Swiss Re estimates the damage caused by Hurricane Ian, which wreaked havoc in the US at the end of September, at US$1.3 billion. As a result, the company announced on Tuesday that it expected a loss of approximately $0.5 billion in the third quarter.
Total temporary insured loss from the hurricane is estimated by the Swiss reinsurer to total $50 to $65 billion. However, these estimates may need to be adjusted during damage reports and assessments.
The group’s return on equity (ROE) target of 10 percent for 2022 is “unlikely”, according to the statement. The reason for this is not only the impact of natural disasters, but also the war in Ukraine and the high volatility in the financial markets.
The group is committed to medium-term goals
However, the company is on track to meet the 2022 targets of its Life and Health Reinsurance (L&H Re) and Corporate Solutions divisions. Therefore, these two areas should achieve a profit of approximately $300 million and a combined ratio of less than 95 percent. In the case of a combined rate, payments and other expenses to the insured are determined by the premium income. On the other hand, in the case of Property & Casualty Re, the targeted normalized composite ratio below 94 percent will most likely not be achieved.
However, Swiss Re remains committed to its medium-term targets for 2024. According to statements made on Investors’ Day in April, the reinsurer is targeting a 14 percent return on equity until then. The capital position is also quite strong, with an SST ratio of 274 percent as of the beginning of July.
Detailed figures for the third quarter will be released on October 28. (SDA)