Swiss Re says it acted to strengthen its US property and casualty liability reserves in the third quarter after a “comprehensive” review.

The reinsurer added $US2.4 billion ($3.6 billion) to its P&C prior-year US reserves, bringing total reserve additions to $US3.1 billion ($4.6 billion) for the first nine months of the year.

Swiss Re says the addition was partly offset by releases in other lines of business, resulting in a net prior-year reserve strengthening in P&C of $US2 billion ($3 billion) in the third quarter.

“Following these actions, the group estimates overall reserves across property and casualty businesses to be positioned at the higher end of the best-estimate range. The recent introduction of an uncertainty allowance on new business will continue to support the strength of overall reserves.”

CEO Andreas Berger says enhancing the resilience of the business has been a priority.

“We conducted a comprehensive review of our P&C reserves, considering the latest industry data and legal trends,” he said. “With the decisive actions in the third quarter, we have reached our goal of positioning reserves at the higher end of the best-estimate range. Importantly, we have addressed reserve developments in our entire US liability portfolio, including all prior underwriting years.”

Swiss Re says the P&C reinsurance business is now expected to miss its 2024 combined operating ratio target of below 87%.

It expects a third-quarter group net income of $US100 million ($150 million), $US2.2 billion ($3.3 billion) for the first nine months, and more than $US3 billion ($4.5 billion) for the full year.

“Outside the US liability reserving actions, the third quarter featured strong underlying underwriting and investment results across all of the group’s business units,” the reinsurer said.