Zurich Insurance Group expects a net hit of $550 million before taxes from Hurricane Ian, he said on Thursday, although it remains on track to beat its 2020-2022 financial targets, helped by rising premium rates.
Insurers face the potential losses of up to $60 billion of Hurricane Ian, which tore through Florida and the Carolinas in September in what could be the second-largest natural disaster in US history.
Climate change contributes to the increase in losses of insurers in the event of natural disasters.
Europe’s fifth-largest insurer said it saw its overall catastrophe loss ratio for the first nine months about two percentage points above long-term trends.
Zurich is hosting an Investor Day next week where it will set its 2023-2025 goals.
“The group continues to be on track to exceed its strategic and financial targets for the 2020-2022 cycle,” Group Chief Financial Officer George Quinn said in a statement, highlighting “robust premium increases in the whole group”.
Zurich reported property and casualty insurance premiums rose 8% to $33.5 billion in the first nine months, a gain of 13% on a like-for-like basis.
The insurer said The annual premium equivalent (APE) of new business in life insurance decreased by 6% but increased by 2% on a like-for-like basis after adjusting for exchange rate fluctuations, acquisitions and disposals.
Zurich’s Swiss Solvency Test (SST) capital ratio was estimated at 252% as of September 30, compared to 212% a year ago, a sign of greater capital solidity.
(Reporting by Michael Shields in Zurich and Carolyn Cohn in London, editing by Miranda Murray)
Topics
Disaster
Natural disasters
Hurricane
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