Space insurer Swiss Re leaves market

Jan Schmidt, the head of Swiss Re’s space underwriting division, said in an email obtained by SpaceNews that the decision to “cease Space underwriting with immediate effect” was driven by “bad results of recent years and unsustainable premium rates.”
SpaceNews.com

                        WASHINGTON — Swiss Re, the world’s second largest reinsurance company, informed clients and brokers July 31 that it has stopped insuring satellites and launches.
Jan Schmidt, the head of Swiss Re’s space underwriting division, said in an email obtained by SpaceNews that the decision to “cease Space underwriting with immediate effect” was driven by “bad results of recent years and unsustainable premium rates.”
Schmidt emailed clients and brokers the same day Swiss Re board member Andreas Berger told Reuters the company is reducing its space exposure as part of a broader effort to stem losses in its corporate insurance divisions.
Swiss Re’s decision to stop underwriting new space policies follows the destruction of the Emirati imaging satellite Falcon Eye 1 during a July 10 Vega launch failure, costing insurers an estimated 369 million euros ($407 million). 
Insurers were already stomaching a $183 million payout to Maxar Technologies for the failure of its WorldView-4 imaging satellite in January. 
In a July 31 financial report, Swiss Re said it had taken actions to “Significantly reduce General Aviation & Space exposure.” The company generated $953 million in revenue for the first half of the year, down $53 million compared to the first six months of 2018. 
SpaceNews Editor in Chief Brian Berger contributed to this story from Washington.
SpaceNews.com

Source: Space insurer Swiss Re leaves market