… and Swiss Re goes the same way
Reinsurer Swiss Re has reported a surprising third-quarter loss, hurt by lower investment performance and a higher level of catastrophe claims.
The second-largest global reinsurer posted a net loss of CHF304 million ($389 million) for the third quarter after net income of CHF1.47 billion ($1.87 billion) a year earlier.
CEO Jacques Aigrain says the lower performance is due to the widespread volatility in the entire financial sector, to which Swiss Re “has not been immune”.
Property and casualty showed a decline in operating income of 94% to CHF130 million ($0.13 billion). The combined ratio increased by almost 18% to 99.8% while earned premiums declined by 24% to CHF3.6 billion ($4.6 billion).
Swiss Re believes its net claims for hurricanes Ike and Gustav will be around $US365 million ($543 million), and says it remains focused on “underwriting quality versus quantity” for shareholders.
Should the early indicators of general insurance market hardening be confirmed, Mr Aigrain says the group will redirect capital to that market.
The second-largest global reinsurer posted a net loss of CHF304 million ($389 million) for the third quarter after net income of CHF1.47 billion ($1.87 billion) a year earlier.
CEO Jacques Aigrain says the lower performance is due to the widespread volatility in the entire financial sector, to which Swiss Re “has not been immune”.
Property and casualty showed a decline in operating income of 94% to CHF130 million ($0.13 billion). The combined ratio increased by almost 18% to 99.8% while earned premiums declined by 24% to CHF3.6 billion ($4.6 billion).
Swiss Re believes its net claims for hurricanes Ike and Gustav will be around $US365 million ($543 million), and says it remains focused on “underwriting quality versus quantity” for shareholders.
Should the early indicators of general insurance market hardening be confirmed, Mr Aigrain says the group will redirect capital to that market.