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