Zurich: Soaring financial costs from natural disasters sent profits plummeting at Swiss Re last year, the reinsurance giant said Friday.
Combined estimated claims from disasters such as Cyclone Debbie in Australia, Atlantic hurricanes Harvey, Irma and Maria, the Mexican earthquakes, and wildfires in California amounted to $4.7 billion (Dh17.2 billion) in 2017.
The costs pushed profits down 91 per cent to $331 million (€268 million).
“2017 was clearly a challenging year for the industry — and Swiss Re,” CEO Christian Mumenthaler was quoted as saying in a company statement.
“However, we believe the outlook for our industry is now more positive than it has been during the last four years. Changes in the market environment, such as adjusting property and casualty price levels and increases in interest rates, are expected to be beneficial for our business.
“In addition, the catastrophes are a reminder of the relevance of large global re-insurers and their role in tackling the large worldwide insurance protection gap.”
The Zurich-based reinsurer — which provides insurance to insurance firms — is in talks to sell a minority stake in the company to Japan’s SoftBank.
