Swiss Re surprised investors on Tuesday as its third-quarter earnings exceeded forecasts and the world’s second-biggest reinsurance group said it was divesting legacy illiquid assets faster than expected.

Net group profits totalled SFr334m ($325m) compared with a SFr304m loss last year. The combined ratio – an industry yardstick in property and casualty insurance measuring costs and claims as a proportion of premiums – improved to 84.5 per cent from 99.6 per cent year on year after benign natural catastrophe costs and productivity gains.