Swiss Re estimates Hurricane Ian claims at US$1.3bn

Swiss Re estimates preliminary claims from Hurricane Ian at around US$1.3bn, resulting in an expected group net loss of approximately US$0.5bn for Q3 of 2022. While the 2022 target of 10% group ROE is unlikely to be reached given the impact from natural catastrophes, the Ukraine war and financial market volatility, the group says it remains confident in the mid-term outlook and committed to its 2024 profitability goals.

Hurricane Ian made landfall in western Florida on 28 September 2022 as a category 4 hurricane. With sustained wind speeds of about 150 miles per hour (240 km/h), Ian was one of the strongest hurricanes to ever make landfall in the US, subjecting the affected region not only to extreme winds but also storm surges and torrential rain. Swiss Re estimates the preliminary total insured market loss from Hurricane Ian at US$50–65bn.

The reinsurer adds that foregoing estimates are subject to uncertainty and may need to be subsequently adjusted as the claims notification and assessment process continues.

L&H Re and Corporate Solutions remain on track to achieve their respective 2022 targets of approximately US$300m net income and a reported combined ratio of less than 95%. P&C Re's reported and normalised combined ratios were affected in the third quarter by an increase in small- to mid-sized claims, partly driven by economic inflation. As a result, the business is unlikely to reach its normalised combined ratio target of less than 94% in 2022.

However, the ad hoc statement adds that Swiss Re maintains its “very strong capital position”, with group SST ratio of 274% as of 1 July 2022 which, the reinsurer says, allows it to pursue profitable opportunities in a hardening reinsurance market, while remaining committed to its capital management priorities.

The group’s results for Q3 will be announced on 2th8 October 2022.

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