“Confluence of occasions” drives web loss for Swiss Re

Swiss Re has reported a web lack of US$285 million for the primary 9 months of 2022, in comparison with a web revenue of US$1.3 billion for a similar interval final yr.

In its monetary report, Swiss Re defined that the loss was pushed by a US$442 million web loss within the third quarter (Q3), notably the impression of Hurricane Ian on property and casualty reinsurance (P&C Re) and a rise in small- and mid-sized claims.

“The primary 9 months of this yr have been marked by a confluence of occasions affecting Swiss Re’s monetary efficiency: from turbulence within the monetary markets to a rise in pure disaster claims, surging inflation, and the warfare in Ukraine,” mentioned Swiss Re group CEO Christian Mumenthaler.

The report additionally detailed a return on fairness (ROE) of -2.1% for the primary 9 months of 2022, down from an ROE of 6.6% for a similar interval final yr. The most recent return on funding (ROI) was pushed by detrimental market-to-market impacts on listed fairness investments.

Amongst Swiss Re’s companies, P&C Re took the toughest hit from this yr’s challenges, with a web lack of US$283 million for the primary 9 months of 2022, in contrast with a web revenue of US$1.5 billion in the identical interval final yr. On the brilliant facet, the worldwide reinsurer’s different companies have carried out nicely and have remained on monitor to fulfill their full-year targets.

“Now we have bolstered reserves by US$0.7 billion over the previous 12 months to deal with the impression of financial inflation,” mentioned Swiss Re group CFO John Dacey. “Rising rates of interest are already serving to to compensate for this impression, with the recurring contribution from our fixed-income portfolio rising by round US$100 million within the third quarter alone. Most significantly, regardless of the challenges this yr, we now have maintained our very robust capital place and stay dedicated to our capital administration priorities.”


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