Munich Re sees Q4 claims hit but confident for 2020 profitPosted On: Nov. 26, 2019 8:45 AM CST
(Reuters) — Munich Reinsurance Co. is facing big claims for typhoons and fires in the fourth quarter but has grown more confident about meeting its 2020 profit goal, the reinsurer’s chief financial officer said.
Typhoon Hagibis, which struck Japan in October and was the worst storm there in decades, “will surely be costly,” CFO Christoph Jurecka told journalists on Monday evening in comments embargoed for Tuesday, as he highlighted losses from forest fires in the U.S. and bush fires in Australia.
Munich Re is also examining whether it will have to increase provisions for its Australia life reinsurance operations, where in recent years it has seen increased claims for its disability business.
“It is entirely possible that we will have to do something for Australia,” he said.
Munich Re has said that it will likely exceed its initial profit target for 2019 of €2.5 billion ($2.76 billion). Mr. Jurecka said the company had grown “more confident” about reaching its goal for profit of €2.8 billion in 2020.