For the first nine months of 2022, Swiss Re reported a net loss of US$285 million (approximately GBP245.9 million). The company made a net profit of US$1.3 billion during the same period last year.
According to Swiss Re’s financial report, the loss was caused by a net loss of $442 million in the third quarter (Q3), specifically the impact of Hurricane Ian on property and casualty reinsurance (P&C Re) and an increase in small and medium-sized claims.
“A number of events impacted Swiss Re’s financial performance during the first nine months of this year,” said Swiss Re group CEO Christian Mumenthaler. “There was financial market turmoil, increased natural disaster claims, rising inflation, and a war in Ukraine.”
According to the report, the return on equity (ROE) for the first nine months of 2022 was -2.1%, lower than the 6.6% ROE for the same time period in 2021. The most recent return on investment (ROI) was caused by negative market-to-market effects for listed equity investments.
P&C Re was the hardest hit by this year’s issues. It had a net loss of US$283 million in the first nine months of 2022, compared to a net profit of US$1.5 billion at the same time last year. On the plus side, the global reinsurer’s other businesses have performed admirably and are on track to meet their full-year targets.
“We’ve added US$0.7 billion to our reserves over the last year to deal with the effects of inflation,” said Swiss Re group CFO John Dacey. “Rising interest rates are already assisting in offsetting this effect. The regular contribution from our fixed-income portfolio increased by around $100 million in the third quarter alone.” Most importantly, despite this year’s challenges, we have maintained our very strong capital position and remain committed to our capital management priorities.