ZURICH (Bloomberg) — Swiss Reinsurance, the world’s largest reinsurer, said profit doubled last year to a record as it paid fewer claims for natural disasters and bought General Electric’s reinsurance unit.Net income rose to 4.6 billion Swiss francs ($3.8 billion), or 13.49 francs a share, from 2.3 billion francs, or 7.44 francs, in 2005, Zurich-based Swiss Re said yesterday.

Swiss Re lifted its dividend and announced a share buyback.

Chief executive officer Jacques Aigrain last year agreed to pay $7.4 billion for GE’s unit, helping Swiss Re overtake Munich Re as the largest reinsurer. Earnings were buoyed last year by an absence of major storms, and conditions for reinsurers remain “very good”, chief financial officer George Quinn said yesterday.

“These are very strong numbers,” said Lucio di Geronimo, an analyst at HVB Group in Munich who recommends investors buy Swiss Re shares. “Swiss Re sent a strong signal in terms of capital management.”

The shares rose as much as 5.7 percent, the most since March 2004, before retreating as global markets slumped. The stock was down 30 centimes, or 0.3 percent, to 103.7 francs at 4.07 p.m. in Zurich, valuing the company at 38.9 billion francs.

Swiss Re plans to buy back as much as six billion francs of shares in the next three years, including half of Fairfield, Connecticut-based GE’s nine percent stake in the reinsurer. The other 50 percent of GE’s holding, some 16.7 million shares, was sold yesterday for 104 francs apiece, after the companies scrapped an agreement to lock up the stake until June.

“Today we are in a position where we can provide both very good results as well as a return of substantial profit to the shareholders in the form of a dividend increase, which we believe is sustainable,” Aigrain, 52, said in an interview.

The company will raise its dividend by 36 percent to 3.40 francs.

Swiss Re, which helps insurers such as Allianz SE shoulder risks for clients, joins Munich Re in reporting a surge in 2006 profit, as claims for property and casualty damages slumped. Natural and man-made catastrophes last year cost insurers $15 billion in claims, the lowest amount in almost a decade, Swiss Re said on December 20.

Claims from tropical cyclones fell to about $250 million after reaching a record $87 billion in 2005 because of disasters including Hurricane Katrina, according to Munich Re.