Swiss Re swings to loss

Swiss Re AG said Friday that it swung to a loss in the first half of the year due to coronavirus-related claims and reserves, but that it is confident about the rest of 2020.

The Swiss reinsurer posted a net loss of $1.14 billion compared with a profit of $953 million a year earlier. The decline was largely due to booking claims and reserves related to the coronavirus of $2.5 billion, it said.

“The vast majority of this loss estimate are claims we think have incurred, but which have not yet been reported to us,” the company said. It said this figure is expected to cover most of its ultimate Covid-19 losses.

Premiums earned and fee income rose to $19.33 billion from $18.16 billion, largely due to growth in its property and casualty insurance business.

“While some degree of uncertainty remains with regards to future Covid-19 losses, we are confident in the outlook for our Group,” Chief Executive Christian Mumenthaler said, without commenting on specific guidance.

Kim Richters

source:marketwatch.com