FRANKFURT (Reuters) - Reinsurer Swiss Re (S:SRENH) said on Thursday that it swung to a net loss in the first quarter of 2020, as the coronavirus outbreak began to bite.
The loss was $225 million (180.3 million pounds) during the period compared with profit of $429 million a year earlier. Analysts had expected a net profit of $59 million, according to Refinitiv.
The disappointing quarter follows a smaller-than-expected profit in 2019 due to claims for a series of man-made and natural disasters, as well as expenses for its U.S. casualty business.
"Swiss Re's business remains resilient despite the financial impact of the crisis on our results," Chief Executive Christian Mumenthaler said.
The Zurich-based company said its corporate insurance arm, which has recently reported losses and is undergoing restructuring, set aside $223 million in reserves for anticipated claims related to the coronavirus outbreak, mainly for insurance to protect against event cancellations, a business that it is exiting.
Swiss Re's combined ratio in its property and casualty division, a key measure of profitability, worsened slightly to 110.8% versus 110.3% a year earlier. Readings below 100 indicate profitability.
