Swiss Re is expecting a net loss of approximately $0.5 billion in the third quarter, it said in a statement Tuesday. The expected loss is due to preliminary claims related to Hurricane Ian which could reach $1.3 billion.

Due to damage caused by severe winds, storms and torrential rain, the reinsurer said it would unlikely meet its 2022 group return on equity (ROE) target of 10 percent but is still holding onto its 2024 profitability goals.

Capital Position

Although SwissRe is on track to meet its 2022 targets in life & health reinsurance and corporate solutions, it would unlikely to achieve property & casualty reinsurance normalised combined ratio goal, it said.

It added that its «very solid» capital position was maintained, with group swiss solvency test ratio of 274 percent as of July 1, 2022. 

With sustained wind speeds of about 150 miles per hour (240 km/h), Hurricane Ian was one of the strongest hurricanes to ever make landfall in the US which Swiss Re estimated as resulting in a preliminary total insured market loss of up to $65 billion.