SpaceNewsreports that Swiss Re has left the space insurance market due to losses.
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 is the world’s second largest reinsurance company.
The failure of an European Vega rocket last month resulted in $407 million (369 million euros) in losses to the insurance industry. The United Arab Emirate’s Falcon Eye 1 satellite was lost in the failure.
That accident followed on the heels of a $183 million claim by Maxar Technologies after the WorldView-4 satellite failed in orbit.