Swiss Re has reported a internet lack of US$285 million for the primary 9 months of 2022, in comparison with a internet earnings 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 internet 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 first nine months of this year were marked by a confluence of events affecting Swiss Re’s financial performance: from turbulence in the financial markets to an increase in natural catastrophe claims, surging inflation, and the war 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 newest return on funding (ROI) was pushed by detrimental market-to-market impacts on listed fairness investments.
Among Swiss Re’s companies, P&C Re took the toughest hit from this yr’s challenges, with a internet lack of US$283 million for the primary 9 months of 2022, in contrast with a internet earnings of US$1.5 billion in the identical interval final yr. On the intense aspect, the worldwide reinsurer’s different companies have carried out properly and have remained on observe to satisfy their full-year targets.
“We have bolstered reserves by US$0.7 billion over the past 12 months to address the impact of economic inflation,” mentioned Swiss Re group CFO John Dacey. “Rising interest rates are already helping to compensate for this impact, with the recurring contribution from our fixed-income portfolio rising by around US$100 million in the third quarter alone. Most importantly, despite the challenges this year, we have maintained our very strong capital position and remain committed to our capital management priorities.”