Swiss insurer Helvetia expects ‘exceptionally high’ claims from major events in Q3

Swiss insurer  Helvetia expects exceptionally high claims expenses from severe weather and major events in the third quarter of 2023.

An unusual accumulation of intense weather events has caused considerable damage in several market units since July 2023, the company said ahead of its third quarter reporting.

Due to the above-average number of intensive claims events in recent months, Helvetia said it currently expects a total net claims burden from natural catastrophes and major loss events of around CHF 200 million in the third quarter of 2023. It means that the claims amount from natural and major loss events in Q3 alone was around one and a half times higher than in 2022 as a whole.

The losses were driven by storms, hailstorms and heavy rainfall that led to considerable damage, mainly in the market units of Switzerland, Italy and Germany.

The company was also affected by a major fire in Switzerland at the beginning of July 2023 and recorded other smaller natural and major loss events in several market units.

As part of its half-year 2023 reporting, Helvetia estimated and communicated the net claims amount of the severe weather events in Switzerland and Italy in July to be in the mid double-digit million range. It estimated the net claims expenses for the major fire in the low double-digit millions.

However, the insurer insists that its capitalisation remains strong, with an estimated SST ratio of around 300 percent at the end of September 2023.

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