Claims related to hurricane Ian and geopolitical and market challenges contributed to a third-quarter loss for Swiss Re.
Swiss insurance giant Swiss Re reported a third-quarter net loss of $442 million as the property and casualty unit was hit by claims due to hurricane Ian along with an increase in small- and medium-sized claims. Despite booking a second-quarter profit, Swiss Re through the first nine months of the year has a net loss of $285 million, according to a company statement Friday.
Earlier this month, the insurer already said it would not reach its Group ROE target of 10 percent for this year, but nevertheless remains confident in its mid-term outlook and the goal of attaining 14 percent ROE in 2024.
«The first nine months of this year were marked by a confluence of events affecting Swiss Re's financial performance: from turbulence in the financial markets to an increase in natural catastrophe claims, surging inflation, and the war in Ukraine. While P&C Re has been significantly affected by these headwinds, all other businesses are performing well and are on track to reach their 2022 financial targets,» said Group CEO Christian Mumenthaler.
Through the first nine months of the year, Swiss Re faced natural catastrophe claims of $2.7 billion and made provisions of $283 million related to the war in Ukraine.
Bright Spots
While the property and casualty (P&C) lost $283 million during the first three quarters of the year, life and health (L&H) reported net income of $221 million and corporate solutions a $356 million profit.
The group's net earned premiums and fee income increased 1.3 percent to $32.4 billion in the first nine months of 2022 compared with the same period last year. Growth was impacted by unfavorable exchange rate movements. Using stable exchange rates are used, growth was 5.2 percent, according to the statement.
