Swiss Re to Post ‘Large’ Q3 Losses from Italy Bridge Collapse, Natural Disasters

104

Swiss Re AG said it will post relatively “large” losses from claims in the third quarter, as man-made disasters including the collapse of a bridge in Italy add to damage from storms.

Natural disaster claims, mainly from Japan and North America, totaled $1.1 billion in the period, the reinsurer said in a statement from Zurich. Man-made losses, including from the collapse of a motorway bridge in Genoa, Italy, that killed 43 people, added $300 million.
“This is clearly more than expected by the market,” said Vontobel analyst Stefan Schuermann, who reduced full-year earnings estimates. I Switzerland Re raised the estimated full-year natural disaster budget to $ 1.1 billion; Hurricane Michael added a new charge in the fourth quarter. Ic

The forecast includes $ 500 million in compensation claims for Jebi, the strongest typhoon to hit Japan in 1993. Overall, natural disaster claims fell sharply following a record last year, which allowed insurers to raise some prices last year. Swiss Re said on Thursday that the cumulative demand for the first nine months was in line with expectations.

Shares in the world’s second-largest reinsurer fell 1.5 percent before reversing the loss, trading at 0.6 percent higher in Zurich at 09.45. Munich Re AG, the largest reinsurer, increased by 0.1 percent.

Munich Re also expects relatively large demands for the quarter from natural and man-made disasters, according to a person who provides information on the subject. Unlike the Swiss Re, the firm didn’t give a warning, indicating that the impact wasn’t material enough.

The Munich Re spokesman refused to comment on the size of the allegations and said the company would report all figures on November 7 when it published its third quarter results.

Storms, floods
The Swiss Re is scheduled to issue a nine-month earnings report by November. The first-half net income fell to $ 1 billion, compared to a year earlier, to $ 1.2 billion, due to changes in US accounting rules.
According to the spokesperson of the company, major losses from natural disasters such as wind storms, earthquakes, hurricanes and floods in the goods and services unit of the insurance company were a total of $ 3.7 billion a year ago.

With the exception of last year, Swiss Re was reported to be more than $ 1 billion in the previous quarter.

Switzerland Re, the burden of demand, in part, said the corporate solutions will be moved by the unit.

Legal warning !
The information, comments and suggestions there are not covered by investment advice. It is based on the author's personal opinions. These views may not fit your financial situation and risk and return preferences. For this reason, based solely on this information, investment decisions may not have the appropriate consequences for your expectation. Our Site is not responsible for any direct or indirect damages incurred by the investors as a result of the use of the information on the Site, deficiencies in the sources, damages incurred by profit, moral damages, or damage to third parties.