Typhoon Jebi to cost Swiss Re US$500mOctober 22 2018 by InsuranceAsia News Staff
Swiss Re estimates its preliminary claims costs from natural catastrophes amount to approximately US$1.1 billion in the third quarter, net of retrocession and before tax. Claims from Typhoon Jebi alone are expected to cost the firm US$500 million.
Typhoon Jebi was the strongest typhoon to strike Japan since Yancy in 1993. The storm made landfall over Shikoku and on September 4 reached the Kansai region of Japan as a category 5 typhoon. At least 11 people died and more than 600 were injured.
Kansai International Airport, one of the most important transport hubs in Japan, was closed due to flooding. According to Swiss Re estimates, total insured market losses for Typhoon Jebi are expected to be around US$6 billion.
Other hits for the firm in the third quarter include Hurricane Florence, which hit the Carolinas in September and is expected to cost around US$120 million in claims. Other disasters including Typhoon Trami in Japan, the Carr wildfire in California and a windstorm in Ontario add up to another US$500 million of losses.
In the same market announcement, Swiss Re said the third quarter showed a significant increase in man-made losses in industrial business lines. Multiple large man-made disasters included the collapse of the Genoa motorway bridge in Italy, a shipyard fire in Germany and the Ituango dam flooding in Colombia — are expected to lead to approximately US$300 million in claims. The claims are expected to affect the group’s reinsurance and corporate solutions business units equally.
However, despite the costly quarter, the reinsurer said its results for the first nine months of the year are broadly in line with expectations.
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