Munich Re predicts $4.31 billion cost of hurricanes

Firm follows the likes of Swiss Re, XL, Lloyd’s and Zurich in revealing cost estimates

Munich Re predicts $4.31 billion cost of hurricanes

Insurance News

By Paul Lucas

The hurricanes that struck the US and parts of the Caribbean left devastation in their wake – primarily for the families and loved ones of those displaced, but also for the insurance companies that have to pick up the financial tab as efforts are made to get back on track.

The string of insurers impacted by the devastation is extensive – already we’ve reported on cost estimates from Lloyd’s of London, as well as Swiss giants Zurich and Swiss Re. Meanwhile, XL Group yesterday revealed its losses would surpass the billion-dollar marker as it attempts to get to grips with the full impact of the devastation.

Now it is the turn of reinsurance giant Munich Re to step into the spotlight – and its losses are similarly substantial.
The firm expects its costs from hurricanes Irma, Maria and Harvey to reach £2.4 billion (approximately SGD$4.31 billion) although it states that estimates are “still fraught with considerable uncertainty.”

As a result, according to a BBC report, the company expects only a “small” profit for 2017.

“High losses from severe natural catastrophes are part and parcel of our business,” said Joerg Schneider, chief financial officer of Munich Re, as reported by the BBC. “We will continue to offer our clients full reinsurance capacity.”

The impact of recent catastrophes does not end there for the firm either – it states that the impact of Mexican earthquakes and other disasters will take its overall losses for the quarter past the €3.2 billion marker.

Related stories:
XL Group sees profits tumble thanks to natural catastrophes
Lloyd’s reveals updated hurricane claims estimates

Keep up with the latest news and events

Join our mailing list, it’s free!