Swiss Re posts $1.1 billion first half net loss over virus

ZURICH: Swiss Re posted a net loss of $1.1 billion in the first half of 2020 due to claims and making reserves related to the coronavirus pandemic, the Swiss reinsurer announced Friday. Excluding the COVID-19 crisis, the group's net income was $865 million, it said in a statement, indicating the impact of the pandemic on its results.

The Zurich-based group had generated a net profit of $953 million in the first half of 2019. "Although the COVID-19 crisis is still evolving, we took a prudent approach to build substantial reserves for the group's exposures already in the first half of this year," said the group's chief financial officer John Dacey.

"This gives us more certainty in the outlook for the remainder of 2020 and beyond." Its property and casualty reinsurance division (net loss $519 million) and its corporate solutions arm (net loss $301 million) were the hardest hit.

Swiss Re said it had maintained an industry-leading capital position in the first half of 2020 despite the significant addition to COVID-19 loss reserves. "We expect the claims and reserves we have booked in the first half of 2020 to cover the majority of our ultimate COVID-19 losses," said Swiss Re's group chief executive Christian Mumenthaler. "While the impact on our earnings is significant, it remains manageable."