COVID drags Swiss Re to a $691mn 9M loss

Global reinsurer Swiss Re has reported a $691 million net loss for the first nine months of 2020, compared to a $1.3 billion profit registered over same period in 2019.

Much of Swiss Re’s performance so far in 2020 has been heavily impacted by the COVID-19 pandemic. Property & Casualty Reinsurance fell to a $201 million net loss, against a $880 million profit in 2019. Combined ratio increased to 110.3% from 101.4%.

Net premiums earned by P&C Re increased 9.2% to $15.5 billion in the nine-month period, due to large transactions and growth in natural catastrophe business, driven by successful renewals in the US and Asia. Life & Health Reinsurance’s nine month income was $72 million, also down from the $651 million profit reported a year earlier. Excluding COVID-19 losses, net income was $620 million. L&H Re also saw net premiums earned and fee income increase 6.4% to $10.1 billion. Swiss Re Corporate Solutions registered a net loss of $323 million, an improvement from the $441 million loss in 2019. Claims and reserves related to COVID-19 totalled $678 million in the first nine months of 2020.

“The COVID-19 pandemic continues to have a profound impact on communities, families and businesses across the globe, and our sympathies go out to all affected. Since the pandemic started, we have thoroughly tracked and prudently assessed its impact on our Group,” said Swiss Re’s Group Chief Executive Officer Christian Mumenthaler. “We built substantial reserves in the first half of this year. Based on developments since then, we believe that our reserving approach remains appropriate and reflective of the ongoing uncertainty surrounding the impact of the pandemic.

“Our businesses are delivering a positive underlying performance, and we are confidently executing on the Group’s priorities in improving market conditions.“ The sale of ReAssure to Phoenix Group closed in the third quarter of 2020. Following the closing, Life Capital paid a dividend to Swiss Re Group of $1.5 billion.

Life Capital reported a net loss in the first nine months of 2020 of $136 million. This was largely driven by continued investment into the growth of iptiQ. Losses related to COVID-19 amounted to $15 million for the first nine months. Looking forward, Mumenthaler noted, “Swiss Re is well-equipped to benefit from an improving market environment.

“Our capital position is very strong, allowing us to pursue profitable growth as prices develop favourably across both our P&C Re and Corporate Solutions businesses. “We are confident that we can continue to support our clients with risk knowledge, capital strength and tailored solutions in these unprecedented times.“

Source: Reinsurance News