Analyst Note| Henry Heathfield |
Swiss Re has reported a net loss of $285 million for the first nine months of this year. That means the business is tracking a little better than the $261 million loss that we have forecast for the full year. The loss is ultimately attributable to the property and casualty division and the $2.5 billion of large natural disaster losses that Swiss Re has incurred. These stem from Hurricane Ian, floods in Australia and South Africa, and hailstorms in France. We maintain that reinsurers have a lot of rates to put through to catch up with the rising intensity of natural disasters. Fortunately, with rising yields and declining portfolios, capital has become lighter and that gives these businesses more leverage during renewal periods. The combined ratio so far is 106.1%. That’s a little worse than the 104.4% that we forecast for the full year.