Munich Re Sees Greater Challenge to Reaching Target After Hurricane Ian Losses -- Update

   By Ed Frankl 
 

Munich Re AG on Friday said it has now become more challenging to meet its 2022 profit target after Hurricane Ian caused roughly 1.6 billion euros ($1.57 billion) in losses, though it still made a third-quarter profit.

The German reinsurer reported a net profit of around EUR500 million in the three months to the end of September, it said in an unscheduled update.

The result is a surprise compared with expectations of a net loss of EUR167 million, according to analysts polled by the company.

Shares rose on the news, climbing 1.4% at 1129 GMT to EUR253.10.

However, the Bavarian company added the loss estimate from Hurricane Ian, which struck Florida and neighboring states in the United States and killed dozens of people earlier this fall, were still subject to substantial uncertainty.

The reinsurer said it still expects a full-year profit of around EUR3.3 billion despite flagging the "significantly" more difficult environment, though on the basis that major losses in the fourth quarter will be in line with expectations.

Losses from expected claims from Hurricane Ian have led to a reassessment of full-year financial targets elsewhere in the sector.

Swiss Re AG on Tuesday posted a profit warning on the back losses from Hurricane Ian, which it estimated would lead to claims of around $1.3 billion.

Munich Re is due to publish full third-quarter results on Nov. 8.

Write to Ed Frankl at [e-mail]

(END) Dow Jones Newswires

October 21, 2022 07:45 ET (11:45 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.