Munich Re to take US$3.2-billion hit from hurricanes

The insurer says that is contributing to a significant loss in the 3rd quarter and likely a “small profit” for the full year

German insurance company Munich Re says it expects to take a 2.7 billion-euro (US$3.2 billion) hit from Hurricanes Harvey, Irma and Maria.

The company, which as a reinsurer provides backup policies to companies that write primary insurance policies, said Thursday that costs from major disasters that also included earthquakes in Mexico will total 3.2 billion euros for the July-September period.

Related: Munich Re joins index-based weather risk protection platform

It says that, along with unrelated financial effects, means it will post a 1.4 billion-euro loss for the third quarter and likely a “small profit’” for the full year.

Munich Re cautioned in a statement that estimates of losses from the three hurricanes are “still fraught with considerable uncertainty.’”

Rival Swiss Re has estimated that its own payouts linked to the hurricanes and earthquakes will be about US$3.6 billion.

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Copyright © 2017 Transcontinental Media G.P.
Transcontinental Media G.P.