Munich Re expects ‘higher than average’ cat losses

Munich Re Ltd. on Friday said its third-quarter expected earnings of about 500 million euros ($492.3 million) will be hurt by “higher than average” losses in property/casualty reinsurance, largely tied to Hurricane Ian.

While the insurer and reinsurer still expects a yearly profit of €3.3 billion for 2022, Ian’s expected €1.6 billion price tag “remains subject to substantial uncertainty,” Munich Re said in a statement, adding “it has become significantly more challenging to meet the 2022 profit target.”

Munich Re plans to provide finalized Q3 results on Nov. 8 as scheduled, the statement said.

A number of other insurers have recently issued third-quarter guidance largely based on insured losses from Hurricane Ian, estimates for which have now reached up to $74 billion.

Axis Capital Holdings Ltd. said late Thursday it expects its third-quarter earnings to be hurt by a pre-tax net loss estimate for catastrophes and other weather-related events of $212 million, $186 million after-tax, including $160 million for Hurricane Ian.

One day earlier, Arch Capital Group Ltd. said its 2022 third-quarter results will take a hit of $530 million to $560 million across its property/casualty insurance and reinsurance segments due to the effects of Hurricane Ian and other catastrophic events.