Natural catastrophes have weakened Europe’s big four reinsurers’ results in H1, and with the peak North Atlantic hurricane season still to come, there is a risk that they might do so again in H2, says a Moody’s investors service report.
The four reinsurers reported combined net profits of €1.9bn in the first six months of 2022, down from €3.6 billion a year earlier.
According to the report, weaker property and casualty reinsurance results were also apparent due to the above-average amount of catastrophe claims.
French reinsurer SCOR reported a net loss of €239 million for the first half of 2022, driven by claims related to the drought in Brazil, flooding in Australia and other weather events.
Moody’s suggests that H2 claims are typically significantly higher than in H1, noting the potential risk for the reinsurers.
However, Munich Re and Hannover Re are reported to have used less than half of their annual large natural catastrophe budgets in the first six months.
This will provide them with some additional buffer for the remainder of the year, says Moody’s.
Swiss Re reported nat cat claims higher than budget, but still holds more than 50% of its full-year nat cat budget.
As a reminder, catastrophe losses in H1 2022 were reported to be above the ten-year average for the period, including by Swiss Re, who pegged insured losses natural catastrophe events at $35 billion.
