Swiss Re has outlined the extent of its exposure to the swathe of emerging risks which have also hit the wider market this year.

The (re)insurer estimates its preliminary claims from Hurricane Ian at approximately $ 1.3 billion, resulting in an expected group net loss of approximately $0.5 billion for the third quarter of 2022. 

It added that 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.

However, it stressed that 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 also estimates the preliminary total insured market loss from Hurricane Ian in the $50–65 billion range.

It stressed that these estimates are subject to uncertainty and may need to be subsequently adjusted as the claims notification and assessment process continues.

L&H Re and Corporate Solutions remain on track to achieve their respective 2022 targets of approximately $300 million net income and a reported combined ratio of less than 95%. 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.

Swiss Re also said it maintains its very strong capital position, with group SST ratio of 274% as of 1 July 2022, which it suggested allows it to pursue profitable opportunities in a hardening reinsurance market, while remaining committed to its capital management priorities.

The group’s results for the third quarter will be announced on 28 October 2022.