Swiss Re AG will post a third-quarter loss and warned it may not reach a profitability goal for this year because of claims tied to damage from hurricane Ian.
The storm, which hit Florida last month and was one of the strongest hurricanes to ever make landfall in the US, will result in $1.3 billion preliminary claims for the reinsurer, it said in a statement Tuesday. The company expects to post a net loss of about $500 million in the quarter.
What Bloomberg Intelligence Says:
Marking another year in which Swiss Re is likely to miss return-on-equity and underwriting-profit targets, Hurricane Ian losses - costing $1.3 billion and resulting in a 3Q net loss of $500 million -- may nevertheless be a relief, given the company's recent history. This is nonetheless an earnings vs. a capital event, given the reinsurer's Swiss Solvency ratio was a very strong 274% as of July 1.-- Charles Graham, BI insurance analyst. Read the full report here.Swiss Re said it's now unlikely to reach a target for a 10% return on equity this year, as the impact from natural catastrophes, the war in Ukraine and financial market volatility combine to erode profit. The insurer said it was confident about the mid-term outlook and confirmed its 2024 profitability goals.
The insurer is scheduled to report its third-quarter earnings on Oct 28. The stock rose 0.5% at 11:36 a.m. in Zurich trading on Tuesday, paring losses this year to about 20%.
The company estimates the total insured market loss from Ian at as much as $65 billion, though that number may have to be adjusted as claims are being processed.
