November 5, 2018 09:30
Insurance brokers of damages are still afraid that the cost of global disasters has an impact on the protections that they sell, as the cost of reinsurance increases as the disasters accumulate.
The most recent results presented by the reinsurer Swiss Re could reassure them. Despite the disasters that have hit the four corners of the planet this summer, the reinsurer is doing to good account.
After the first nine months of 2018, Swiss Re posted a net profit of 634 million u.s. dollars (US$ M). It is better that in 2017, where the reinsurer was rather a loss of 468 MILLION US$ after 9 months. It had, however, rebounded in the fourth quarter of 2017 to finish the year with a net profit of$ 331 MILLION US dollars.
The details of the disaster
Disasters, however, have not failed in the third quarter of 2018. Two typhoons made landfall in Japan. Hurricane Florence has devastated the two states of Virginia in the United States, a country which has also suffered violent bush fires occurred in California. Swiss Re has also been tornadoes that have struck Gatineau and surrounding municipalities such as climate event expensive. Total bill for Swiss Re since the beginning of 2018 : us $ 1.6 billion (US$ b).
However, it is US$ 2 billion less than what he had paid after the first nine months of 2018. The hurricanes Harvey, Irma and Maria, as well as the earthquakes that occurred in Mexico all had an impact on the finances of Swiss Re. After nine months, the invoice totaled $ 3.6 billion US$. The total of 2017 was finally costed at$ 4.7 billion US.
For the fourth quarter of 2018, Swiss Re will have to add the invoice to the hurricane Michael to his list of disasters to be covered.
A accounting different
The opposite of what the insurers publicly traded in Canada, Swiss Re does not disclose the specific results of each quarter. The reinsurer has rather an assessment of his situation throughout the year, either after 3, 6, 9 and 12 months. Swiss Re said to have adopted this method to promote a longer-term vision of its financial statements, as well as to adapt to the changes that occurred in Europe in the field. The Journal of insurance has therefore to be calculated these results by quarter from data made public by the reinsurer.