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Swiss Re has fallen into the red due to the corona pandemic. The conclusion was that the world’s second-largest reinsurer suffered a net loss of $ 691 million after nine months.
The year before, $ 1.3 billion of profit had hit the register. But at least Swiss Re was able to massively contain the negative sign in the summer after reporting a loss of $ 1.1 billion mid-year. In the third quarter, Swiss Re posted a profit of $ 444 million.
Without the crown’s claims and the $ 3 billion provisions, the group would have made a profit of $ 1.6 billion in the first nine months, Swiss Re wrote in a statement Thursday.
67 percent of these losses are provisions for losses that have occurred but have not yet been reported, explained the reinsurer: “There is still a high level of uncertainty regarding numerous factors related to the pandemic; this means that actual losses in the coming quarters could deviate positively or negatively from Swiss Re’s estimates ”.
Exceeded expectations
With the numbers, Swiss Re has done significantly better than expected. According to the AWP news agency, analysts expected an average loss of $ 862 million.
Swiss Re has successfully mastered volatility in global financial markets and achieved a return on investment (ROI) of 3.4 percent in the first nine months of 2020, it said. Earnings benefited from recurring income and realized gains on fixed income positions, as well as market gains on equity positions in the third quarter.
Property reinsurance was the most affected
Of the losses in the first nine months, $ 1.6 billion relate to the property reinsurance division. The combined ratio there worsened to 110.3 percent after 101.4 percent a year ago. Values greater than 100 percent mean that Swiss Re is suffering an actuarial loss.
The group’s largest division generated a loss of $ 201 million after a profit of $ 880 million in the prior year. The crown damage came from coverage of independent business interruptions of property damage, canceled or postponed events, as well as damage to property, credit and the surety business, he said.
$ 678 million in corona damages are attributable to the primary insurance business of large companies (Corso). About half of these claims are event cancellation provisions, an area of business that Corporate Solutions left in 2019. The remainder is related to explicit coverage of independent business interruptions of property damage and credit business damage. and bonds.
Corso suffered a loss of $ 323 million after a deficit of $ 441 million the previous year. Swiss Re’s troubled son’s turnaround is gaining momentum, he said. In life and health reinsurance, losses totaled $ 689 million.
More rewards
The Group’s net premium income increased to $ 30.2 billion from $ 28.4 billion in the prior year.
Group Head Christian Mumenthaler was encouraged by the prospects: “Thanks to our strong capital base, we can be confident of profitable growth, as prices in both the P&C Re business and Corporate Solutions are developing. positively “.
