JP Morgan has said it expects life reinsurance claims to be higher in the US due to Covid.
The firm said that an analysis of the available data showed that there had been more than 130,000 covid-related deaths in the US in Q1 2022 and that this would lead to poor life reinsurance results.
It said: “Life Re claims relating to COVID-19 have been a significant drag on the sector since Q2’2020. Looking at the data, we expect that Q1 22 will continue to see high levels of claims as COVID-19 related deaths in the US continue to run at high levels.”
It added: “The majority of the reinsurers have already given their expectations of COVID-19 related claims for 2022. We expect that most of these assumptions were front loaded for 2022, given the high numbers of deaths reported at the time of FY21 reporting season.”
A graphic from the firm showed life reinsurance claims arising from covid as a percentage of equity. This, it said, showed the impact for SCOR is highest when in comparison with peers.
