Munich Re posts huge Q3 loss after catastrophe claims bill
Munich Re has said it is only expecting a “small profit” for the full year after natural catastrophe pushed the reinsurer to a €1.4bn (£1.2bn) loss in the third quarter of 2017.
The reinsurer had flagged the €1.4bn loss in a profit warning last month.
Natural catastrophes in the third quarter – including hurricanes Harvey, Irma and Maria – cost Munich Re €3.2bn.
The huge Q3 loss meant Munich Re reported a €146m loss for the first nine months of 2017.
Munich Re chief financial officer Jörg Schneider (pictured) said: “The major losses from natural catastrophes in the third quarter have had a substantial impact on our result. Despite business being otherwise good, this means that we can only post a small profit in 2017.”
But Schneider also said that there were positives to come from the swathe of natural catastrophes.
He said: “Our capitalisation is strong, and we are able to take full advantage of opportunities arising from the likely market recovery. We expect prices to rise again in the forthcoming negotiations – particularly in the markets that have been hardest hit by recent natural catastrophes.
“But, regardless of this, we are continuing to press ahead with our initiatives for profitable growth – especially in connection with digitalisation.”