"The first nine months of this year were marked by a confluence of events affecting Swiss Re's financial performance: from turbulence in the financial markets, to an increase in natural catastrophe claims, surging inflation and the war in Ukraine. While P&C Re has been significantly affected by these headwinds, all other businesses are performing well and are on track to reach their 2022 financial targets", said Swiss Re's Group Chief Executive Officer Christian Mumenthaler.
The reinsurer mentioned that P&C Re results were impacted by natural catastrophe claims in Q3, L&H Re and Corporate Solutions continued to deliver strong results and remain on track to meet their full-year targets.
Thus, P&C Re reported a net loss of USD 283 million for the first nine months of 2022, compared with net income of USD 1.5 billion in the same period in 2021. Large natural catastrophe claims of USD 2.5 billion in the period were higher than expected and mainly relate to Hurricane Ian, floods in Australia and South Africa, hailstorms in France as well as a series of other smaller events around the world. Net premiums earned increased slightly to USD 16.6 billion, supported by continued price improvements, while the combined ratio was 106.1% for the first nine months of 2022 due to significant natural catastrophe losses and economic inflation impact.
L&H Re reported a net income of USD 221 million for the first nine months of 2022, compared with a net loss of USD 32 million for the first nine months of 2021, as COVID-19-related claims decreased from USD 1.2 billion to USD 608 million. Net premiums earned and fee income remained largely unchanged at USD 11.2 billion for the first nine months of 2022 compared with the prior-year period. L&H Re is on track to reach its net income target of approximately USD 300 million for 2022.
Corporate Solutions reported a net income of USD 356 million in the first nine months of the year, compared with USD 425 million in the prior-year period. The continued solid result confirms improved resilience of the underlying business and was achieved despite reserves related to the Ukraine war and large natural catastrophe losses of USD 187 million, mainly relating to Hurricane Ian and flooding in Australia. Net premiums earned increased by 4.6% to USD 4.1 billion for the first nine months of 2022, while corporate Solutions' combined ratio of 93.1% for the first nine months of 2022 is well on track to reach the full-year target of less than 95%.
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