(Bloomberg) -- Munich Re, the world’s largest reinsurer, said stormsled by Hurricanes Harvey and Irma will probably wipe outthird-quarter profit and threaten the company’s ability to meet itsfull-year earnings target.

High insured losses

“These two events are expected to result in high insured losses,which the market and Munich Re are unable to quantify at themoment,” the company said Wednesday in a statement.

Related: Irma destroys or damages majority of homes in theFlorida Keys [photos]

The storms in North America add to challenges for new ChiefExecutive Officer Joachim Wenning who is seeking to counter yearsof falling profit as the company was pressured by low interestrates and competition from Wall Street firms in taking onweather-related risks. The company had previously given guidance of2017 profit of 2 billion euros ($2.4 billion) to 2.4 billioneuros.

“Despite good business performance in 2017 to date, the lossesfrom Harvey and Irma could mean that Munich Re might miss itsprofit guidance,” for the year, the company said.

Primary insurers

Primary insurers such as Hartford Financial Services Group Inc. andAllstate Corp. have said it is too early to assess the damage fromIrma, which struck Florida days ago. That’s partly because it’sbeen difficult to get staff into the state after flooding. Someinsurers say their costs will be cushioned partly by risk-transferdeals with reinsurers.

Munich Re shares have dropped about 2% this year in Germany. Thecompany’s American depositary receipts tumbled in New York afterthe announcement, falling to $20.32, or 3.9% less than Tuesday’sclose.

Related: As Irma fades, swirling Jose eyes $19 trillion inproperty

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