- After a loss in the first nine months, the reinsurer Swiss Re ended the year 2022 with a profit.
- This amounted to 472 million US dollars after a plus of 1.44 billion in 2021, as the group announced.
- Natural disasters such as Hurricane Ian and costs related to the corona pandemic have cost Swiss Re more expensively.
Property and casualty reinsurance suffered particularly from major catastrophes such as Hurricane Ian, which hit the Florida coast at the end of September with wind speeds of up to 240 kilometers per hour and caused severe damage. In addition, investment results were lower and provisions were increased in view of inflation.
As a result, the combined ratio in the division deteriorated by 5.3 percentage points to 102.4 percent. If this value is over 100 percent, then this business is not operationally profitable.
Legend:
Last October, Swiss Re estimated the damage caused by Hurricane Ian at around 1.29 billion Swiss francs.
Keystone/AP/REBECCA BLACKWELL
Swiss Re fared better in life, posting a profit of $416 million compared to a loss of $478 million a year earlier. In this business, the Covid-related losses fell from almost 2 billion to 588 million dollars.
Despite the decline in Group profit, the Board of Directors will propose a higher dividend of US$6.40 per share to the Annual General Meeting in mid-April. Last year, CHF 5.90 was paid out.
Higher prices expected
In the current year, Swiss Re aims to multiply its profit. Thanks to attractive market conditions, the expected decline in Covid claims and higher interest rates, a profit of over $3 billion is expected in 2023.
In the new year, Swiss Re intends to significantly improve profitability. The group is aiming for a profit of over $3 billion. The continued rise in prices for reinsurance cover is likely to be cause for optimism.