After reviewing reserves, Swiss Re is strengthening its provisions for its U.S. liability business by $2.4 billion in the third quarter of 2024.
The reinsurer Swiss Re has massively increased its reserves for its civil liability activities in the United States. As a result, profit in 2024 will be significantly lower than expected.
After reviewing reserves, Swiss Re has decided to strengthen its provisions for its civil liability activities in the United States by $2.4 billion (2.1 billion francs) in the third quarter of 2024, the reinsurer said in a statement on Thursday. press release. This brings the increase in provisions during the first nine months of the year to a total of $3.1 billion. Total reserves would therefore be “at the upper end” of the targeted range.
However, due to this measure, Swiss Re must revise its profit forecasts significantly downwards. For the third quarter of 2024, the reinsurer expects a profit of approximately $0.1 billion, according to the press release. For the first nine months of 2024, it expects a profit of around $2.2 billion.
Assuming normal claims development, Swiss Re expects a profit of more than $3 billion for 2024. It previously forecast a consolidated profit of more than $3.6 billion. Detailed figures will be published on November 14.
In addition to the measures announced Thursday, all business units recorded “good results” in underwriting and investments in the third quarter, the press release said. The L&H Re (life reinsurance) and Corporate Solutions divisions remain on track to achieve their respective 2024 targets of approximately $1.5 billion in profit and a combined ratio below 93%. The P&C Re division will, however, not achieve the combined ratio target below 87% in 2024 due to the increase in provisions.
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