Swiss Re, the world's second-largest reinsurer, estimated its claims burden from hurricanes Harvey, Irma and Maria in the United States and from two earthquakes in Mexico at roughly $3.6 billion in the third quarter.
"Swiss Re maintains a very strong capital position and high financial flexibility to support our clients' needs, respond to market developments and execute on our capital management priorities," Chief Financial Officer David Cole said in a statement on Friday.
Of the claims burden, which is net of retrocession and before tax, around $175 million was from the earthquakes in Mexico.
Reinsurers like Swiss Re, Munich Re and Hannover Re act as a financial backstop for insurance companies, helping them pay for large damage claims from hurricanes or earthquakes in exchange for part of the premiums.
Insurance
Swiss Re sees $3.6 bln hit from US hurricanes, Mexico earthquakes
Key Points
- The world's second-largest reinsurer estimated its claims burden from hurricanes in the U.S. and from two earthquakes in Mexico at roughly $3.6 billion in the third quarter.
- Of the claims burden, which is net of retrocession and before tax, around $175 million was from the earthquakes in Mexico.
Destroyed trees and houses are seen after the passage of hurricane Irma and Maria in Orient Bay, St. Martin, on September 20, 2017.
Helene Valenzuela | AFP | Getty Images