Munich Re warns hurricanes to hit 2017 profitPosted On: Oct. 26, 2017 8:34 AM CST
(Reuters) — Munich Reinsurance Co. warned on Thursday that it now expects to post only a "small profit" for 2017 after its third-quarter earnings were hit by losses from hurricanes Harvey, Irma and Maria.
The German reinsurer had previously expected net profit of €2 billion to €2.4 billion ($2.4 billion to $2.8 billion), but cast doubt on that target in September after hurricanes Harvey and Irma.
Hurricane Harvey struck Texas in late August, causing massive flooding. It was followed by Irma and Maria in September, which hit several islands in the northern Caribbean, Florida's Gulf Coast and the U.S. territory of Puerto Rico.
Fitch Ratings Inc. said in a report last month after Hurricane Maria that the global insurance and reinsurance industry was facing more than $100 billion in catastrophe losses.
Munich Re said it expected losses of €2.7 billion from the hurricanes, which will push it to a third-quarter loss of €1.4 billion.
Shares in Munich Re, which is due to publish full quarterly results on Nov. 9, fell 1.8% to the bottom of the blue-chip DAX index in pre-market trade.