Global reinsurance giant Munich Re has reported losses related to Hurricane Ian within its property and casualty reinsurance business of roughly €1.6 billion after retrocession, based on an insurance industry market loss of around $60 billion (excluding the NFIP).
The reinsurer notes that, in the third quarter of 2022, it recorded higher-than-average major-loss expenditure in P&C reinsurance as a result of the impacts of Hurricane Ian, which remains subject to “substantial uncertainty.”
“Depending on the outcome of the ongoing quarterly closing – and on account of sustained encouraging operating performance in all lines of business and a positive one-off effect at ERGO Life and Health Germany – Munich Re anticipates a quarterly profit of about €0.5bn,” says the European reinsurer.
A profit of €500 million for the third quarter would be above analysts’ consensus of €167 million.
At the same time, Munich Re still expects to produce a profit of around €3.3 billion for the full year, but notes that it has become “significantly more challenging” to meet its 2022 profit target, which is subject to the realisation of currently anticipated positive one-off effects, particularly regarding investments.
The reinsurer explains that the forecast is still based on major losses in the fourth quarter being in line with expectations, noting that a major loss budget of over €1 billion equates to 13% of net earned premiums.
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