Swiss Re estimates $3.6 bln in US hurricanes

Swiss Re, the world's second-largest reinsurer, estimated its claims burden from hurricanes Harvey, Irma and Maria in the United States and from two earthquakes in Mexico at roughly $3.6 billion in the third quarter.

"Swiss Re maintains a very strong capital position and high financial flexibility to support our clients' needs, respond to market developments and execute on our capital management priorities," Chief Financial Officer David Cole said in a statement on Friday. Of the claims burden, which is net of retrocession and before tax, around $175 million was from the earthquakes in Mexico.

However, these estimates are subject to a higher-than-usual degree of uncertainty, the Zurich-based company said, adding that they may need to be adjusted as claims assessment continues.

Chief Financial Officer David Cole said that the company retains a solid capital position and disposes of the financial flexibility required to support its clients and respond to market developments.

Reinsurers like Swiss Re, Munich Re and Hannover Re act as a financial backstop for insurance companies, helping them pay for large damage claims from hurricanes or earthquakes in exchange for part of the premiums.