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UPDATE 1-Talanx slashes 2017 profit target on hurricanes, Mexico quake
October 27, 2017 / 6:02 AM / 22 days ago

UPDATE 1-Talanx slashes 2017 profit target on hurricanes, Mexico quake

* Now sees losses from hurricanes, quake at 900 mln euros

* Says expects to post Q3 net loss of 20 mln euros

* Cuts 2017 net profit target by 200 mln euros (Adds losses from hurricanes and earthquake, background)

FRANKFURT, Oct 27 (Reuters) - German insurer Talanx warned on Friday it would post a loss for the third quarter and slashed its 2017 profit target due to large losses from hurricanes Harvey, Irma and Maria and an earthquake in Mexico.

Hurricane Harvey struck Texas in late August, causing massive flooding. It was followed by Hurricanes Irma and Maria in September, which hit several islands in the northern Caribbean, Florida’s Gulf Coast and the U.S. territory of Puerto Rico.

Fitch said in a report last month after hurricane Maria that the global insurance and reinsurance industry was facing more than $100 billion in catastrophe losses.

Talanx said it currently assumed around 900 million euros ($1.05 billion) of losses from the hurricanes and the earthquake, more than it had budgeted for natural catastrophes for the entire year.

The hit would lead to a third-quarter net loss of 20 million euros, Talanx said, and lowered its full-year net profit target to around 650 million euros from 850 million.

Talanx had already warned last month that it may miss its profit target as its reinsurer Hannover Re is being hit by major claims.

Larger German rival Munich Re said on Thursday that it now expected to post only a “small profit” for 2017 after its third-quarter earnings were hit by losses from the hurricanes.

$1 = 0.8595 euros Reporting by Maria Sheahan; Editing by Stephen Coates

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