Munich Re expects €1.8bn losses from hurricane Ida & European floods

Munich Re expects €1.8bn losses from hurricane Ida & European floods

Worldwide reinsurance giant Munich Re has said that it expects to report around EUR1.8 billion of disaster losses from third-quarter events hurricane Ida and the European flooding caused by windstorm Bernd.These loss choices are a little bit greater than some analysts had actually been expecting for the Q3 events, but this is most likely only a reflection of Munich Res continued development in a firmer market where the reinsurance business tends to maintain some more of the risk.
A comparison may be back in 2017, when Munich Re pre-announced an expectation of up to EUR1 billion of losses associated with cyclones Harvey and Irma, which reveals that the company has actually likely increased its US cat exposure over the last few years.
Munich Re breaks down its losses as, an approximately EUR600 million struck from windstorm Bernd and its flooding in Germany and neighbouring nations, which has struck both its property-casualty reinsurance and ERGO Property-casualty insurance coverage Germany segments.
While cyclone Ida has triggered losses of approximately EUR1.2 billion that all fall to Munich Res property-casualty reinsurance section.
We presume these are net quotes, so after any retrocessional reinsurance or quota share advantages, including from Munich Res sidecar lorries, although the company does not define gross or net.
The reinsurer reiterated today that it anticipates to still strike its full-year profit target of EUR2.8 billion, even after these significant losses.
It expects its third-quarter result will still be around EUR400 million, which is a little below expert agreement now, however likewise consider rising mortality related losses from the pandemic and how COVID-19 has impacted its life and health reinsurance book.
Other Q3 disaster loss pre-announcements include: Swiss Re at $1.27 billion internet; RenaissanceRe at $725 million net; Arch Capital at up to $345 million net; Everest Re at $635 million net; and AXIS Capital at $250 million net.
Yesterday, Munich Re said that “extended” market hardening is expected in reinsurance, with rate increases forecast for the January 2022 renewals and European agreements seen as especially crucial.

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