Reinsurance giant Munich Re said that it may have an unprofitable third-quarter and that its full-year profit target is now at risk due to the losses expected from hurricanes Harvey and Irma.
The combination of the two events is expected to result in high insurance and reinsurance industry losses, Munich Re said, adding that neither it nor the market can quantify the loss at this early stage.
The reinsurer said that the combined losses may make it miss its full-year profit target of €2 billion to €2.4 billion, while it expects to fall to a loss in the third-quarter from the hurricanes impact.
However, Munich Re stressed that its business and strategy means it can continue to offer clients continuity of service, with a capital base that enables it to still offer full reinsurance capacity to its customers.
