Swiss Re lowered its full-year profitability guidance after increasing its U.S. liability reserves.
The Swiss reinsurance company said Thursday that it expects a full-year group net income of more than $3 billion compared with the $3.6 billion the company said it expected to achieve when it set out its second quarter results in August.
The lowering of expectations follows its decision to increase its U.S. liability reserves for its property & casualty reinsurance division by $2.4 billion in the third quarter.
The increase brings its total reserve additions to $3.1 billion for the first nine months of the year, the company said.
Swiss Re will publish its results for the first nine months of the year on Nov. 14 but said Thursday that it expects group net income for the third-quarter to be around $0.1 billion.
While its life & health reinsurance division and corporate solutions unit remain on track to meet their 2024 targets, Swiss Re said its property & casualty reinsurance division is expected to miss its combined ratio target of less than 87% following the decision to increase reserves.
Write to Adam Whittaker at [email protected]