While the 2022 target of 10% Group ROE is unlikely to be reached given the impact from natural catastrophes, the Ukraine war and financial market volatility, the Group remains confident in the mid-term outlook and committed to its 2024 profitability goals.
Hurricane Ian made landfall in western Florida on 28 September 2022 as a category 4 hurricane. With sustained wind speeds of about 150 miles per hour (240 km/h), Ian was one of the strongest hurricanes to ever make landfall in the US, subjecting the affected region not only to extreme winds but also storm surges and torrential rain. Swiss Re estimates the preliminary total insured market loss from Hurricane Ian at USD 50-65 billion,Including National Flood Insurance Program (NFIP).
The foregoing estimates are subject to uncertainty and may need to be subsequently adjusted as the claims notification and assessment process continues.
L&H Re and Corporate Solutions remain on track to achieve their respective 2022 targets of approximately USD 300 million net income and a reported combined ratio of less than 95%. P&C Re's reported and normalized combined ratios were affected in the third quarter by an increase in small- to mid-sized claims, partly driven by economic inflation. As a result, the business is unlikely to reach its normalized combined ratio target of less than 94% in 2022.
Swiss Re maintains its very strong capital position, with Group SST ratio of 274% as of 1 July 2022. This allows Swiss Re to pursue profitable opportunities in a hardening reinsurance market, while remaining committed to its capital management priorities.