Reinsurance company Swiss Re reported a small net loss in the first nine months after booking claims and reserves of $3 billion related to COVID-19. The company said that the loss is less than expected.
Insurers worldwide are facing large claims from the pandemic, including those for canceled events, and losses from hurricanes and wildfires in the United States.
The net loss of $691 million within the period compares with a net profit of $1.3 billion a year earlier. Analysts had expected a bigger loss of $877 million.
The company said that uncertainty around the pandemic is high, and the impact could affect claims in the coming quarters too.
Swiss Re CEO Christian Mumenthaler stated that “we believe that our reserving approach remains appropriate and reflective of the ongoing uncertainty surrounding the impact of the pandemic.”
Swiss Re’s combined ratio in its property/casualty division, a key measure of profitability for its biggest revenue generator, worsened to 110.3% from 101.4% a year earlier. Readings below 100 indicate profitability.
Rival Munich Re stated earlier that it anticipated a sharp drop in third-quarter profit.