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Boeing-crash fails Swiss Re on the profit

natural disasters and the crash of a Boeing 737 Max with the Grounding of the entire Boeing 737 Max fleet have made Swiss Re in the first quarter of a stroke by the bill. The profit dipped, the financial community reacted disappointed, the stock fell.

the bottom line is that Swiss Re from January scored until the end of March a net profit of 429 million dollars as the second largest reinsurer in the world on Friday in a Communiqué announced. In the same period last year, as natural disasters were remained, had earned the group's 457 million dollars. The profit was even stronger, thanks to the climb of the stock markets since the beginning of the year.

natural disasters and man-large-caused damage would be charged to earnings in the first quarter, wrote to Swiss Re. Including the Floods in Northern Australia, the cyclone Idai in Mozambique, the plane crash of Ethiopian Airlines and the subsequent flight ban for machines of the type Boeing 737 Max. In addition the result was impacted by further significant damage claims as a result of events of the previous year, in particular, by the Typhoon "Jebi" in Japan.

This led to a deterioration in the claims cost rate (Combined Ratio) in the non-life reinsurance business (P&C) 110,3 percent, after he had located in the comparatively low losses, the first quarter of 2018, with 92.0 per cent. At a value of about 100 percent of the business insurance is not technically profitable.

profit slump in the property reinsurance

The gain in the non-life reinsurance business fell to $ 13 million from 345 million a year earlier. Alone, the Floods in Northern Australia have failed, with around 210 million at the beech, it was called. The additional load due to "Jebi" is not estimated by the Swiss Re.

About $ 90 million were incurred in property reinsurance for the crash of a Boeing machine in Ethiopia, and the subsequent ban on flights for the Boeing 737 Max fleet. The overall burden of the case is still not in sight, said chief financial officer John Dacey, in a telephone conference.

For an end to the flight ban is not yet in sight. Up to determine the cause of a crash, all the machines of this type must remain on the ground, as there is already a few months before the accident, had crashed in Ethiopia, such a plane in Indonesia.

Currently, go through together with other insurers on the policies of Boeing, to evaluate how many of the policies could come for the payout, said Dacey. Because it could be Max, due to the Grounding of all Boeing 737 aircraft are still claims from Airlines to the American aircraft manufacturer damage.

company insurance with loss

The case was also on the primary insurance business of Swiss Re with enterprise customers. The load this is less than half as large as in the non-life reinsurance business, said Dacey – in plain text, so less than $ 45 million.

the whole of The company's insurance division suffered by medium-sized and large human damage caused a loss of $ 55 million to a profit of 41 million in the previous year. The Performance was unsatisfactory, said CEO Christian Mumenthaler in the Communiqué.

Now, the Swiss Re in your care child about the books: The business unit conducting currently a comprehensive strategic analysis and review divisions by the summer of all of the business and loss reserves. In particular, the problems of generating liability business in the United States should continue to be pruned, said chief financial officer Dacey.

After all, front is a relaxation of the Price noticeable. In the first quarter, the prices started to increase broad-based 5 percent.

group chief optimistic

In contrast to the other lines, shone the life and health reinsurance: the thrust due to the global stock market rally, the unit was able to achieve a record profit of $ 328 million to 201 million in the previous year.

The volume was able to increase Swiss Re, meanwhile, in The first quarter, net premiums earned increased group-wide by 5.5 percent to $ 8.8 billion.

Due to the successful Treaty renewals since the beginning of the year, you'll stay for the non-life reinsurance business to be optimistic, said Mumenthaler. In the case of commercial insurance, you go to the insufficient performance.

analysts were disappointed and languages of another weak result. The stock popped up on the Swiss stock exchange until noon to almost 3 percent, while the overall market SMI stand-by 0.1 per cent in the Plus.


Created: 03.05.2019, 13:01 p.m.

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