Swiss Re AG, the world’s second-largest reinsurer, has reported significant losses following explosions at a port in the Chinese city of Tianjin in August. As a result,
Swiss Re AG, based in
Zurich, is reporting losses of US$250 million.
However, the company was still able to announce a 13% increase in profits for the third quarter, with net income climbing to $1.4 billion in the three months through September.
Swiss Re said it had benefited from strong underwriting and investment results and from a quiet period for natural catastrophes. It plans to use surplus cash to buy back about SFr1 billion (US$1 billion) in shares starting in mid- November.
Chief executive officer Michel Lies said: “Despite an overall insurance market environment that remains challenging, we’ve again made progress towards our 2011—2015 financial targets.”
However, Lies said the numbers still could change as they involve “considerable uncertainties.”
Overall, reinsurance brokerage
Guy Carpenter has estimated that the Chinese disaster could cost insurance and reinsurance companies anywhere between US$1.6 billion and US$3.3 billion.
Other large insurers, such as Zurich, are also forecasting huge losses. Zurich estimates a loss of around US$275 million; Validus Holdings is expecting US$44 million; and PartnerRe Ltd is predicting US$60 million.
Aspen Insurance Holdings revealed that it initially estimates approximately $50m in total pre-tax losses largely related to the explosion in the port of Tianjin, China in August, and other natural disasters in the third quarter.
Meanwhile XL Group, which operates under the
XL Catlin brand, also said that its preliminary estimated losses related to the Tianjin port explosion are approximately $100m.
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Two insurers take combined hits of $150m from Tianjin blast
