The FINANCIAL — After Hurricane Harvey caused significant damage in Texas and adjacent states at the end of August, there has now been another devastating storm in the form of Hurricane Irma.
It caused extensive damage on islands in the Caribbean, and also in Florida. These two events are expected to result in high insured losses, which the market and Munich Re are unable to quantify at the moment. Despite good business performance in 2017 to date, the losses from Harvey and Irma could mean that Munich Re might miss its profit guidance of €2.0–2.4bn for the year – depending on how the business performs until the end of 2017. The figures for the third quarter of 2017 will probably show a loss. The business and risk strategy of Munich Re ensures that even after such severe natural catastrophes the Group has a sufficiently solid capital base to still be able to offer full reinsurance capacity to its clients, according to Munich Re.