Swiss Re swings to a loss of $1.1 bn in H1, Combined ratio worsens to 115.8%

``We expect the claims and reserves we have booked in the first half of 2020 to cover the majority of our ultimate COVID-19 losses,” said Swiss Re Chief Executive Christian Mumenthaler

  

Reinsurance company Swiss Re said on Friday the $2.5 billion in claims and reserves related to COVID-19 that it booked in the first half of the year would likely cover the bulk of its pandemic-related losses.

The Zurich-based company, confirming figures released last week,said it swung to a loss of $1.1 billion in the first half of the year. That extended a loss in the first quarter and more than erased $953 million in net profit during the first six months of 2019.

``We expect the claims and reserves we have booked in the first half of 2020 to cover the majority of our ultimate COVID-19 losses,” said Chief Executive Christian Mumenthaler.

Swiss Re’s combined ratio in its property and casualty division, a key measure of profitability for its biggest revenue generator, worsened to 115.8% versus 100.5% a year earlier. Readings below 100 indicate profitability.

The company said a turnaround of its corporate insurance arm, which has recently reported losses, was “well on track.” It narrowed its net loss to $301 million in the first half of the year from $403 million a year earlier.
 


Comments