Swiss Re boosted its loss reserves by $2.4 billion in the third quarter, a move aimed at addressing worsening trends in U.S. liability loss costs. This increase brings their total prior-year U.S. liability reserve additions to $3.1 billion for the year, reflecting a thorough review of industry data and legal trends. Despite the significant reserve charge, Swiss Re reported a small profit of $102 million for the quarter, with expectations of a net income of approximately $3 billion for the full year, although this is $600 million less than their earlier target. Executives emphasized the psychological benefits of addressing the reserve issues upfront, enabling a more confident approach to underwriting in future business.
