Categories: Business

Zurich Insurance coverage sees $550 million hit from Hurricane Ian, on monitor for targets beat By Reuters

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© Reuters. FILE PHOTO: The emblem of Zurich Insurance coverage is seen at its headquarters in Zurich, Switzerland January 13, 2022. REUTERS/Arnd Wiegmann

By Michael Shields and Carolyn Cohn

ZURICH/LONDON (Reuters) -Zurich Insurance coverage Group expects a internet $550 million pre-tax hit from Hurricane Ian, Europe’s fifth-largest insurer mentioned on Thursday, although it stays on monitor to beat its 2020-2022 monetary targets, helped by premium fee rises.

Insurers face potential losses of as much as $60 billion from Hurricane Ian, which ravaged Florida and the Carolinas in September in what could possibly be the second-largest pure disaster loss in U.S. historical past.

Local weather change is contributing to better losses from pure catastrophes for insurers, and a few of them are backing away from overlaying the danger, notably in hurricane or wildfire-prone areas.

“I would like to take (Hurricane Ian) as a one-off however I am undecided it’s,” chief monetary officer George Quinn instructed Reuters, including that pure disasters had been more likely to change into extra extreme and frequent.

“We’re going to proceed to constrain our urge for food for pure disaster danger.”

Zurich sees its total disaster loss ratio for the primary 9 months round two share factors above long-term developments.

Zurich holds an investor day subsequent week when it should set out its 2023-2025 targets. Quinn mentioned the targets will probably be harder, after “sturdy premium will increase” helped the insurer’s current efficiency.

Zurich reported property and casualty premiums rose 8% to $33.5 billion within the first 9 months, a acquire of 13% on a like-for-like foundation.

The insurer mentioned life insurance coverage new enterprise annual premium equal (APE) fell 6% however rose 2% on a like-for-like foundation that adjusts for forex actions, acquisitions and disposals.

Zurich’s Swiss Solvency Take a look at (SST) capital ratio was estimated at 252% as of Sept. 30, up from 212% a yr in the past, an indication of better capital power.

Zurich’s shares had been down 1% at 0840 GMT, underperforming European insurance coverage shares. KBW analysts pointed to a capital ratio beneath expectations, reiterating their “underperform” ranking on the inventory.

Zurich introduced a 1.8 billion Swiss franc ($1.83 billion) share buyback programme at half-year outcomes, which Quinn instructed an earlier media name would probably kick off within the fourth quarter.

($1 = 0.9979 euros)

($1 = 0.9856 Swiss francs)

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