Munich Re sees impact from NZ weather disasters

Munich Re sees impact from NZ weather disasters

20 March 2023

Reinsurer Munich Re has flagged claims impacts from the New Zealand weather disasters and the February earthquakes that hit Turkey and Syria.

Two major weather events, including Cyclone Gabrielle, affected New Zealand, it says in an update in the 2022 annual report on events after the balance sheet date.

“On the basis of the information currently available, Munich Re anticipates claims expenditure in the low triple-digit-million euro range for these events,” it says.

The reinsurer says there’s still a high degree of uncertainty at this stage around impacts from the Turkey and Syria earthquakes and precise claims forecasts are not possible yet.

“In consideration of the great uncertainty, Munich Re currently expects claims expenditure in the mid-triple-digit million euro range,” the report says.

Munich Re says its reinsurance operation continues to benefit from the ongoing hard market and, in times of elevated uncertainty and amid high global industry insured losses, it is a sought-after partner for clients due to its capacity and balance sheet strength.

“For the second year in a row and the fifth in the recent past, insured losses surpassed the €100 billion ($159.6 billion) mark – a figure that is becoming the new normal in times of climate change,” Board of Management Chairman Joachim Wenning says in the report.

“Nevertheless, property-casualty business is proving to be robust in the face of high major losses – a mark of quality for our natural catastrophe models in particular.”