While Munich Re warns of sharply lower quarterly profits due to the pandemic, Swiss Re has another message.
The Swiss reinsurer's stock has been dragged down by the novel coronavirus, falling to half its value since the outbreak. Investors clearly fear policyholders will pile damage claims on Swiss Re.
The Zurich-based company told investors it sees the fallout from the pandemic as «absolutely manageable,» in a statement from CEO Christian Mumenthaler and Chairman Walter Kielholz. It faces claims in its life and health business as well as from property and casualty policyholders, the duo said.
German Rival Hit Hard
Its investment portfolio will also be hit by market turmoil, Swiss Re noted. The reinsurer has a strong capital position with «significant financial flexibility» as well as a conservative, hedged investment book which can partially offset stock drops and wider credit spreads, it said.
The vaguely-worded update didn't satisfy investors, who sent Swiss Re's stock as much as five percent lower in trading on Wednesday. Rival Munich Re on Tuesday pulled back from guidance, now predicting a low three-digit euro million profit in the first quarter, from 633 million euros ($696 million) last year.
