Hurricane Ian blows Swiss Re into loss

Swiss Re warned investors Tuesday that Hurricane Ian would push it into a third-quarter loss of approximately half a billion dollars.

The Swiss reinsurance giant gave a preliminary estimate of total insured losses from the hurricane which ravaged Cuba and the southern United States at $50-65 billion.

“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,” the firm said.

Swiss Re estimated it will receive approximately $1.3 billion in claims from the storm, which struck the US state of Florida as a category 4 hurricane, leading to more than 100 deaths.

It added the estimates were very preliminary and subject to change.

Swiss Re said it would now be unlikely to meet its return-on-equity profitability target.

“While the 2022 target of 10 percent 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,” Swiss Re said in a statement.