Munich Re issues profit warning after US hurricanes
Losses from Hurricane Harvey and Irma could mean that Munich Re will miss its profit guidance of €2.0–2.4 billion for 2017, the company said in a Sept. 13 press release.
After Hurricane Harvey caused significant damage in Texas and adjacent states at the end of August, Hurricane Irma has been another devastating storm causing extensive damage on islands in the Caribbean, and also in Florida. These two events are expected to result in high insured losses, which the market and Munich Re are unable to quantify at the moment.
Munich Re’s results for the third quarter of 2017 will probably show a loss, the company said. The company noted that its business and risk strategy ensures that even after such severe natural catastrophes the group has a sufficiently solid capital base to still be able to offer full reinsurance capacity to its clients.
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