Page 15 - Insurance Times January 2018 Sample

International

News

Year 2017 may be costli- Swiss Re Says Global Insured Catastrophe Losses will
est year for insurers Hit $136 billion in 2017
Swiss Re has estimated that global insured losses from catastrophes in 2017 will
hit $136 billion, the third-highest on record for the
sector, with the United States being the hardest
hit. Total economic losses from natural and man-
made disasters in 2017 are estimated to be $306
billion, up from $188 billion in 2016, Swiss Re said
in a statement, quoting preliminary data.
"The accumulation of economic and insured losses ramped up in the second half
With its string of hurricanes, floods of the year, due primarily to the three hurricanes - Harvey, Irma and Maria -
and other weather shocks, 2017 that hit the U.S. and the Caribbean, and wildfires in California," Swiss Re said.
may be the most expensive year on More than 11,000 people had died or gone missing in disaster events this year,
record for disaster losses, insurance the world's second-biggest reinsurer said.
experts warned.
Munich Re to Increase Shareholding in Global Aero-
Hurricane Harvey in Texas alone
cost $180 billion, with just $19 bil- space to 51%
lion of that loss insured, said mem- Global Aerospace, the London-based provider of
bers of ClimateWise, a network of 28 aerospace insurance, announced that Munich Re
insurance industry organisations. has agreed to purchase an additional 11 percent
Over the last decade, only 30 per of the shares in Global Aerospace Underwriting
cent of catastrophic disaster losses Managers Ltd., the company that manages the
were insured, leaving governments, Global Aerospace Pool. Following the acquisition,
businesses and others to pick up the Munich Re will own 51 percent and a subsidiary of Berkshire Hathaway Inc. will
remaining $1.7-trillion tab, noted continue to own 49 percent.
Swiss Re, the world's second-largest
According to Global Aerospace's website, Munich Re currently has 44.96 per-
re-insurer and a member of
cent of the Global Aerospace Pool; National Indemnity Co. has 23.39 percent of
ClimateWise.
the pool; Tokio Marine and Nichido Fire Insurance Co. has 12.37 percent share;
The growing gap between the Mapfre Global Risks has 10 percent, and Mitsui Sumitomo Insurance has 9.28
amount insured and actual losses is percent. "We are fortunate in having the backing of two such strong and com-
a threat not just to owners of sod- mitted shareholders," commented Nick Brown, group chief executive officer of
den homes, wind-flattened busi- Global Aerospace Underwriting Manager.
nesses and governments facing bal-
"Munich Re has long had a strategic interest in increasing its investment in
looning recovery bills, but even to
Global, and this deal achieves that, while ensuring that Berkshire Hathaway
the insurance industry itself, the
continues to have a very significant interest," he added. "For our customers,
network warned in a report.
pool-members and employees it is business as usual."
The Insurance Times, January 2018 15

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