Global reinsurer Swiss Re estimates its preliminary claims from Hurricane Ian at approximately USD 1.3 billion, resulting in an expected Group net loss of approximately USD 0.5 billion for the third quarter of 2022.
While the 2022 target of 10% Group ROE is unlikely to be reached given the impact from natural catastrophes, the Ukraine war and financial market volatility, the Group remains confident in the mid-term outlook and committed to its 2024 profitability goals.
Hurricane Ian made landfall in western Florida on 28 September 2022 as a category 4 hurricane. With sustained wind speeds of about 150 miles per hour (240 km/h), Ian was one of the strongest hurricanes to ever make landfall in the US, subjecting the affected region not only to extreme winds but also storm surges and torrential rain. Swiss Re estimates the preliminary total insured market loss from Hurricane Ian at USD 50-65 billion.
The reinsurer mentioned that L&H Re and Corporate Solutions remain on track to achieve their respective 2022 targets of approximately USD 300 million net income and a reported combined ratio of less than 95%.
At the same time, P&C Re’s reported and normalised combined ratios were affected in the third quarter by an increase in small- to mid-sized claims, partly driven by economic inflation. As a result, the business is unlikely to reach its normalised combined ratio target of less than 94% in 2022.