Swiss Re expects $1.3bn in claims from Hurricane Ian


Swiss Re has said it expects more than $1bn in claims from last month’s hurricane that battered Florida, which will mean the reinsurer is “unlikely” to meet its target for return on equity this year.

The Zurich-based group on Tuesday forecast a third-quarter net loss of about $500mn, thanks to an expected $1.3bn in claims from Hurricane Ian.

While the company had given an overall target for return on equity for the full year of 10 per cent, it had not said what net income it expected to report in the third quarter.

The group is the first big reinsurer to warn about Hurricane Ian’s effects on its earnings. The company gave a preliminary total insured market loss from the storm of between $50bn and $65bn. Those figures would confirm the event as the second most expensive storm in US history after 2005’s Hurricane Katrina.

At an investor day in April, Swiss Re committed itself to achieving a 14 per cent return on equity for 2024. It said on Tuesday it was still committed to that.

“While the 2022 target of 10 per cent group ROE is unlikely to be reached given the impact from natural catastrophes, the Ukraine war and financial market volatility, the group remains confident in the midterm outlook and committed to its 2024 profitability goals,” the company said in a statement.



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