Munich Re faces a third-quarter loss and may not achieve its €2-€2.4 billion ($3-$3.6 billion) profit target this year because of hurricanes Harvey and Irma.

“These two events are expected to result in high insured losses, which the market and Munich Re are unable to quantify at the moment,” the German reinsurer says.

“The figures for the third quarter will probably show a loss. Despite good business performance [this year] to date, the losses from Harvey and Irma could mean Munich Re might miss its profit guidance… for the year.”

Earnings in the June quarter took a hit from the Grenfell Tower fire in London and other man-made disasters, with net profit down 24.7% to €733 million ($1.09 billion).