Anders Malmström, Group CFO of Swiss Re, one of Europe’s big four reinsurance companies, said this morning that the company set aside roughly $400 million in additional reserves in the first quarter of 2026 for potential inflationary impacts of the ongoing conflict in the Middle East.
During a call with the media following the release of a strong set of results for the opening quarter of the year, Swiss Re’s Group CFO confirmed that the additional reserves for the Middle East war is split $350 million in property and casualty reinsurance, and $50 million in Corporate Solutions.
Malmström emphasised that overall, Swiss Re has not had any direct claims coming from the war, given war exclusions in policies.
“But there’s really the secondary risk that we see coming from the Middle East,” said Malmström. “When you think about all the disruption, the supply chain, and then, in particular, the higher energy prices, that’s where we strongly believe that we’re going to see inflation picking up.”
Later in the call, the CFO reiterated that within P&C direct exposure is very limited, and that while specialty lines do sometimes have more inclusions, so far, the reinsurer has not had any claims that were material.
“Now, the impact of the war is really the second order impact, when you think about the significant increase in energy prices that will drive inflation. Also, the disruption in supply chain will drive inflation.
“And so, that’s why we thought it’s prudent to put money aside for higher inflation. This is for business that has already been written, not claims, they haven’t happened, but claims will come, can be property prices, can be construction, can be whatever. And that’s why we believe that higher inflation will have an impact.”
