Natural disasters dampen Swiss Re profits

Re-insurance giant Swiss Re reported weaker profits Thursday, hit by payouts for natural disasters including Hurricane Matthew in the United States.

Net profit fell 23 percent to $3.5 billion, below analyst expectations.

Wildfires in Canada and an earthquake in New Zealand also weighed on the bottom line, the Swiss company said.

But "solid underwriting and a strong investment result" made a positive contribution.

"We report a good net income for 2016, despite navigating a difficult environment for quite some time now," said CEO Christian Mumenthaler in a statement.

"Amid softening market conditions, we saw minimal global economic growth and continued low interest rates last year, on top of significant political developments."

Swiss Re still raised its dividend by 5.4 percent and said it planned to buy back its own shares in the market to the tune of one billion Swiss francs (940 million euros, $990 million).

The company's shares were down 1.2 percent on the Zurich stock exchange in morning deals at 91.80 francs.