Swiss Re set for £420m hurricane bill

13 April 2012

THE world's second-largest reinsurer, Swiss Re, said it expects claims totalling $750m (£420m) from the four hurricanes that have devastated parts of the US this year and the Caribbean and a typhoon which struck Japan. It may have to dip into reserves to cover the costs.

The company said that recent hurricane Jeanne alone was expected to bring claims worth $150.

'The unprecedented nature of this year's storms means that, should claims estimates remain at current levels, Swiss Re will benefit from using some of its equalisation reserves to absorb part of the financial impact of these claims,' it said in a statement.

But the company reiterated that 'the frequency and severity of this year's storm season will have a positive effect on renewing property reinsurance rates'.

Swiss Re warned two weeks ago that it may need to dip into its reserves to cover the cost of this year's storms, casting doubt over its profitability target for the year.

Total insured claims from hurricanes Charley, Frances, Ivan and Jeanne have been estimated at between $20bn-$25bn.

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