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Non-life premiums expanded 1.9 per cent on solid economic growth in emerging markets and selective rate increases in some advanced markets, but global life insurance premiums fell 2.7 per cent, the reinsurer found.
Capital and solvency remained solid despite extraordinarily costly natural catastrophe events and historically low interest rates that lowered insurers' overall profitability.
Daniel Staib, one of the authors of the study, said: "Non-life premium growth in the advanced markets has been supported by gradual rate increases in personal lines of business and in regions affected by large natural catastrophes.
"Despite the adverse environment in 2011, non-life insurers' capital position remained sound, putting the industry in a strong position to grow steadily in the future."
Moderate overall premium growth is expected in 2012, while robust growth in non-life in emerging markets and hardening prices are expected to support premium growth. However, the turn of the pricing cycle is likely to be gradual and limited to certain markets and lines of business, Swiss Re believes. Slower economic growth in the advanced markets will weigh on insurance demand for life and non-life insurance. "Last year was not a great one for premium growth, but 2012 should be a lot better as rates continue to improve in non-life markets and India and China return to robust growth in life markets", said Kurt Karl, Swiss Re's chief economist.