Swiss Re reminded investors of its ‘very strong capital position’ today after issuing preliminary Q3 estimates for hurricanes Harvey, Irma and Maria and the earthquakes in Mexico to be approximately US$3.6bn, net of retrocession and before tax.
Of the total combined losses, claims from the two earthquakes in Mexico are expected to be approximately US$175m, the company said today.
Swiss Re estimates the total insured market losses of the industry caused by
these events to be approximately US$95bn.
Swiss Re loss estimates uncertain
“The foregoing estimates are subject to a higher than usual degree of uncertainty and may need to be subsequently adjusted as the claims assessment process continues.
Yesterday, lawyers warned that direct insurers in the US may face disputes owing to the sheer number of catastrophes to hit the region this year. Simon Kilgour, CMS Partner, said reinsurance reinstatements could “run out by year end”, as the californian wildfires continued to rage.
On his company’s announcement, Swiss Re’s Group Chief Executive Officer, Christian
Mumenthaler, said: “The most recent natural catastrophes have been extremely powerful and we extend our sympathies to all those affected by these events. Through our long-standing and close client relationships, combined with our experience in complex claims handling after large natural catastrophes, we can support our clients when they need us most. It is during these times that we demonstrate our differentiated value proposition and show the value of insurance and reinsurance to society.”
Swiss Re’s Group Chief Financial Officer, David Cole, adds: “Swiss Re maintains a very strong capital position and high financial flexibility to support our clients’ needs, respond to market developments and execute on our capital management priorities.”
After the storm: Notable numbers from reinsurers’ Q3 2017 results (losses attributable to Hurricanes Harvey, Irma, Maria)
- Tokio Marine $580m
- Validus $378m
- Renaissance Re $625m
- XL Group $1.33bn
- Axis Capital total Q3 net losses expected $617m
- Munich Re €500m-€1bn (Harvey and Irma)