Swiss Re predicts hurricane losses of $750 million

Swiss Re today estimates its aggregate claims for hurricanes Rita and Wilma will be approximately US$750 million. Swiss Re CEO John Coomber says “this year’s hurricane season reinforces the benefits of Swiss Re’s highly diversified portfolio across lines of business and geographies. Our financial strength remains very strong, enabling Swiss Re to take full benefit of the excellent pricing conditions in the current renewal season.”Swiss Re’s over-the-cycle target of 10% earnings per share growth will not be met for 2005, the company reported. However, the company will use equalization reserves to mitigate part of the claims caused by this year’s extraordinary hurricane season. Hurricane Rita made landfall as a Category 3 hurricane in Texas on Sept. 24; it also affected Louisiana, Alabama, Arkansas, Mississippi and Tennessee shortly after Hurricane Katrina had already devastated these regions. “Rita is estimated to have caused insured claims in the range of US$10 billion, with a major part stemming from offshore oil installations,” Swiss Re said in a release.The company says its “dividend guidance for 2005 of CHF 2.50 per share remains unchanged.”