Swiss Re: a bulwark against natural disasters
Swiss Re, which acts as a backstop to the world’s insurers, is expecting another quarterly loss. It expects a $500mn net loss in the third quarter. Blame Hurricane Ian, which hit Florida at the end of September.
The Swiss reinsurer anticipates claims of $1.3bn from the storm. Hurricanes, while horribly destructive for people in their path, are in the normal course of business for insurers. Swiss Re shares are therefore trading at around SFr74, down less than both the Swiss market and other European insurers in the past six months.
The shares are not expensive, trading on a 2023 price-to-earnings multiple of under 7 times, less than rival Munich Re’s 9 times, according to Bloomberg data. Its Swiss solvency ratio of 274 per cent as of July suggests a strong capital position.
This story originally appeared on: Financial Times - Author:Tax Cognition
