Lloyd’s estimates Hurricane Ian claims between US$2.3bn – US$3bn
Lloyd’s, the world’s leading marketplace for commercial, corporate and specialty risk, announced that claims to the Lloyd’s market arising from Hurricane Ian are estimated to be in the range of US$2.3bn – US$3bn net of reinsurance, based on Q3 data provided by Lloyd’s syndicates.
Lloyd’s estimates its net market share of the total industry loss will be 3-5%. This is within Lloyd’s range of modelled outcomes and has no impact on Lloyd’s solvency position.
Burkhard Keese, Chief Operating and Financial Officer, Lloyd’s, said:
“Our thoughts are first and foremost with all those affected by the devastating events that have occurred this year, and as ever Lloyd’s stands ready to support its customers through these difficult times.
“We are providing a claims estimate figure for Hurricane Ian outside of our usual financial reporting cycle to provide transparency to the market and will report our 2022 year-end financial results in March 2023.”
Hurricane Ian a heavy cost for Swiss Re
Swiss Re is expecting a net loss of 500 million USD in Q3 2022. The drop in the result would be mainly due to the damage caused by hurricane Ian which has strongly affected Florida. On a gross basis, the loss would cost the Swiss group about 1.3 billion USD.
For the whole market, Ian is expected to lead to insured losses ranging between 50 and 65 billion USD.
Swiss Re’s final results for the third quarter of 2022 will be published on 28 October 2022.
Swiss Re estimates Hurricane Ian claims at approximately USD 1.3 billion
Swiss Re expects Q3 2022 Group net loss of approximately USD 0.5 billion
Swiss Re unlikely to meet its 2022 Group return on equity (ROE) target of 10% but maintains its 2024 profitability goals1
Swiss Re on track to meet its 2022 targets in Life & Health Reinsurance (L&H Re) and Corporate Solutions, but unlikely to achieve Property & Casualty Reinsurance (P&C Re) normalised2 combined ratio goal
Very strong capital position maintained, with Group Swiss Solvency Test (SST) ratio of 274% as of 1 July 2022
Swiss Re estimates its preliminary claims from Hurricane Ian at approximately USD 1.3 billion3, resulting in an expected Group net loss of approximately USD 0.5 billion for the third quarter of 2022. While 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, 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 estimates the preliminary total insured market loss from Hurricane Ian at USD 50–65 billion4.
The foregoing 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 USD 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 maintains its very strong capital position, with Group SST ratio of 274% as of 1 July 2022. This allows Swiss Re 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.
1 Please see disclosure related to the April 2022 Investors’ Day for details on the 2024 targets.
2 Normalised combined ratio assumes average large natural catastrophe losses and excludes prior-year reserve development.
3 Net of retrocessions and before tax.
4 Including National Flood Insurance Program (NFIP).