Natural catastrophes burden major European reinsurers

According to Bank of America (BofA) estimates, the four main European reinsurers are expected to publish higher losses than anticipated in the first quarter of 2023. These include Munich Re, Swiss Re, Hannover Re and SCOR.

The high natural disaster loss experience during the first three months of 2023 would be the reason for the decline in the reinsurance companies' results.

Insured losses resulting from the 6 February earthquakes in Turkey are estimated at 5 billion USD. A portion of this amount would be covered by Munich Re (11.9%) and Swiss Re (9.5%) via the Turkish natural catastrophe pool that they reinsure.

The deadly floods in Auckland and Cyclone Gabrielle in New Zealand are expected to cost the insurance market nearly 2 billion USD. Munich Re, Swiss Re, Hannover Re and Scor would respectively bear 13%, 7.5%, 6.2% and 2.9% of these losses.

The extreme weather conditions in the United States are likely to cause insured losses ranging between 8 to 9 billion USD.