ZURICH, AFP, 04 August 2017  – Reinsurer Swiss Re said Friday that Cyclone Debbie which struck Australia at the end of March lashed its bottom line in the first half of this year, with price competition also leading to a drop in premiums.

Net profits fell by more than a third, or 35 percent to $1.2 billion (1.0 billion euros).

Meanwhile revenue slid 5 percent to $21.2 billion as the premiums it received for providing insurance coverage fell by 8 percent given stiff market competition pushing down prices.

Chief executive Christian Mumenthaler called the first half profit “a solid result despite the challenging market environment and having paid significant claims in the aftermath of natural catastrophes.”

Its property and casualty reinsurance business under which Swiss Re acts as a backup to retail insurance companies generated a net profit of $546 million, dropping from $870 million in the first half of last year.

While last year the company enjoyed positive effects from swings in currency exchange rates that boosted profits but have since disappeared, this year it faced settling $320 million in claims from Cyclone Debbie.

The Swiss firm’s German rival, Munich Re, last month estimated the total cost of Cyclone Debbie, which claimed 12 lives, at around $2.7 billion.

The profitability of its property reinsurance business dipped slightly.

Costs and settlements rose to 97.4 percent of premiums received from 97.2 percent in the first half of last year.

“While our property and casualty segments continued to experience pricing pressure in line with the overall industry and market environment, our life and health segments have delivered stable or even improved results,” chief financial officer David Cole said in a statement.

The life and health reinsurance business delivered $15 million in additional profits, to $432 million.

“This shows the importance of having a diversified business model which can help to balance out volatility in individual areas,” he added