German reinsurance giant Munich Re issued a profit warning for the third quarter Thursday following a damaging hurricane season in the Americas, saying it now expects to report a massive loss.
The group now forecasts a loss of 1.4 billion euros ($1.7 billion) in the third quarter, saying that hurricanes Harvey, Irma and Maria had inflicted some 2.7 billion euros of losses.
Other natural catastrophes, including earthquakes in Mexico, will hit the reinsurer's bottom line, bringing the total damages to around 3.2 billion.
Looking ahead to the full year, Munich Re expects to make only "a small profit" where previously it had forecast profits of between 2.0 and 2.4 billion euros.
Reinsurers provide insurance to insurance companies which need to spread the risks of the policies they provide to clients.
Hurricane Harvey battered Texas and parts of Louisiana in late August, causing severe damage to property and paralysing the country's fourth-largest city, Houston, with major flooding.
In September, Hurricane Irma struck the Florida Keys archipelago and Hurricane Maria slammed into Puerto Rico.
Two powerful earthquakes hit Mexico in September, leaving hundreds dead.
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MUENCHENER RUECKVERSICHERUNG
US Congress passes $36.5 bn in hurricane, wildfire aid
The US Senate on Tuesday approved a $36.5 billion disaster relief package for hurricane-affected communities like Puerto Rico and for areas devastated by wildfires, sending the bill to President Donald Trump for his signature.
The measure outlining "supplemental" disaster spending passed 82 to 17, nearly two weeks after the emergency package cleared the House of Representatives.
The aid … read more
