"The reinsurance market has started to turn, and Swiss Re expects further improvements over the next 6 to 18 months," said the group in its earnings statement.

Higher demand for natural catastrophe insurance in Australia, New Zealand and the United States lifted Swiss Re's volume and prices, it noted.

While the group acknowledged that market instability brought about by state debt issues remains a concern, it has cut its exposure to bonds which failed to make the top grade in solvency ratings.

"After starting to take resolute steps from late 2009 to reduce sovereign debt exposure to non-AAA rated European government bonds, Swiss Re now holds only $78 million in sovereign debt issued by peripheral eurozone countries," said the group.

Its exposure to Greek state debt is nil, it added.

Copyright AFP (Agence France-Presse), 2011