FRANKFURT, Germany (AP) — Re-insurer Munich Re says it may not reach its profit goal for this year because of heavy damage from hurricanes Harvey and Irma.
The company said in a news release Thursday that it "might miss its profit guidance of 2 billion to 2.4 billion euros ($2.4 billion to $2.8 billion) for the year." It also said it would probably show a loss for the third quarter.
Harvey caused heavy damage in Texas and neighboring states in August and Irma left behind widespread destruction in the Caribbean and Florida.
The statement said that "these two events are expected to result in high insured losses, which the market and Munich Re are unable to quantify at the moment."
Re-insurers provide backup insurance for primary insurers so the industry can handle catastrophic losses.