Devastating earthquakes in Türkiye and Syria as well as tornadoes and hailstorms in the United States contributed to losses covered by insurance totaling $43 billion in the first half of 2023, according to the world’s largest reinsurer.
The figure is slightly lower than the $47 billion in insured losses incurred in the first half of 2022 but higher than the 10-year average of $34 billion, Munich Re said in a report released Thursday.
Including uninsured losses, the figure came to $110 billion in the first half of the year – also significantly above the 10-year average.
The earthquakes in Türkiye and Syria in early February, in which some 58,000 people were killed, were the largest contributor to insured and uninsured losses incurred in the first half of 2023 at $40 billion.
The disaster toppled hundreds of thousands of buildings, left millions homeless and severely damaged the Turkish southeastern region's infrastructure. Business groups, economists and the government have said rebuilding could cost more than $100 billion.
A series of severe thunderstorms in the U.S. brought destructive tornadoes and hailstorms that resulted in $35 billion in insured and uninsured losses, according to Munich Re.
Though the El Nino weather pattern is contributing to higher temperatures, Rauch said, “The global trend toward higher water and air temperatures is predominantly driven by climate change – with increasing weather catastrophes and financial burdens as a result.”
Spanish insurer Mapfre's H1 profit falls
Separately, Spanish insurer Mapfre on Friday reported a 6% drop in its first-half net profit, citing challenges in the inflation-hit auto sector and damages caused by the earthquake that devastated Türkiye.
Net profit totaled 317 million euros ($347.5 million) for January through June, down from 337.6 million euros a year earlier, while the group’s premiums grew 14.7% to 14.35 billion euros.
Mapfre updated its estimates on losses from the Türkiye earthquakes, putting them at 99 million euros for Mapfre Re as of the end of June, while the local insurer suffered losses of 5 million euros.
No further relevant losses are expected to be reported in the coming months, the company said.
In the first six months of 2023, the group’s revenues amounted to 17.03 billion euros, up 15% from a year earlier. The combined ratio at the end of June stood at 97.1%, a decrease of 1.3 percentage points.
The combined ratio in the auto business reached 106.2%, improving slightly compared to March 2023. In some regions, tariff increases and management efficiencies were starting to translate into lower auto-combined ratios.
Net profit from the Latin America region soared 70.4% year-over-year to 192.7 million euros, maintaining the region’s position as the main contributor to Mapfre’s profit.
Brazil continued to show a solid growth of over 171%, as premiums amounted to 2.5 billion euros, up 9.4% from last year. The Iberia region saw premiums growing by over 20%, reaching a net result of 122.7 million euros.
