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Markets News

CORRECTED-Munich Re sees slowdown in COVID-19-related losses in Q3

(Corrects paragraph 2 to state Munich Re is an insurer, not a bank)

FRANKFURT, Sept 7 (Reuters) - German reinsurance group Munich Re said on Monday that claims related to the coronavirus pandemic have slowed so far in the third quarter but that it expects hits from a series of hurricanes in North America and a major explosion in Beirut.

The world’s largest reinsurer had estimated around 1.5 billion euros in COVID-19 losses in the first half of the year, putting significant pressure on the insurer’s earnings and prompting it to withdraw its profit guidance for the year.

Munich Re foresees that the North American hurricanes Hanna, Isaias and Laura earlier this summer will result in a “low triple-digit million euro amount” in losses.

The company expects a similar volume of claims from the explosion in Beirut that destroyed swathes of the city and left an estimated 300,000 people homeless.

The current California wildfire season so far is not resulting in material losses, the company said. (Reporting by Tom Sims; editing by Thomas Seythal)

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