All material subject to strictly enforced copyright laws. © 2021 Insurance Insider is part of Euromoney Institutional Investor PLC.
Accessibility | Terms & Conditions | Privacy Policy | Modern Slavery Act | Cookies | Subscription Terms & Conditions

Swiss Re P&C unit swings to nine-month loss of $201mn

swiss-re-logo-zurich-v2.jpg

Swiss Re has reported a net loss for its P&C reinsurance unit of $201mn for the nine months ended September as it booked $1.6bn in Covid-19 claims and reserves at the unit.

Overall the group made a net loss of $691mn after a profit of $1.34bn a year earlier and booked $3bn in Covid claims and reserves, up $500mn from the first-half level.

However, the company noted that it made a group-wide net profit of $444mn in the third quarter, which it described as strong. RBC analyst Kamran Hossain said the result beat a consensus for profit of $248mn.

Covid-19: For P&C Re, Covid-19 claims and reserves amounted to $1.6bn, up $100mn from the first-half figure, while in the Corporate Solutions (CorSo) unit, the figure was $678mn. Swiss Re said 67% of its $3bn group Covid-19 burden represents incurred but not reported reserves. It warned that pandemic-related uncertainty remains high and “could impact claims developments in the coming months, either positively or negatively” relative to its projections.

P&C re: The P&C re unit reported a combined ratio of 110.3% for the year to date, a deterioration of 8.9 points on the same period last year. Excluding Covid, the unit would have achieved a net profit of $1.04bn, Swiss Re said. The P&C re segment also recorded $1.5bn in nat-cat and man-made disaster losses for the nine-month period, including hurricanes Laura and Sally, west coast wildfires and the Beirut port explosion. It noted that nat cats were above expectations in the third quarter.

Swiss Re CorSo: Excluding its Covid-19 losses, CorSo would have achieved a net profit of $211mn for the nine-month period, compared with a $441mn loss the year before. It reported a combined ratio of 118.7%, an 8.3-point improvement on last year. The unit booked $678mn in Covid-19 losses, more than half of which were related to event cancellation. At the first half the Covid-19-related hit at CorSo was $485mn.

CEO Christian Mumenthaler said: “Swiss Re is well-equipped to benefit from an improving market environment. Our capital position is very strong, allowing us to pursue profitable growth as prices develop favourably across both our P&C Re and Corporate Solutions businesses. We are confident that we can continue to support our clients with risk knowledge, capital strength and tailored solutions in these unprecedented times.”

71678
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree