Menu

Reinsurance News

Life reinsurers hit with $4.4bn of COVID-19 claims in Q1, says Bloomberg report

1st June 2021 - Author: Katie Baker

According to a new report from Bloomberg, the cumulative cost of COVID-19 claims for the largest life reinsurers hit $4.4 billion in the first quarter of the year as mortality rates spiked.

covid-19-coronavirus-pandemicThe biggest costs for life reinsurers came from the US and to a lesser extent the UK and Canada but it was also claims from other countries including South Africa and in Latin America which added to the costs.

However, with the vaccine rollout resulting to a drop in deaths in the US and UK, firms such as Swiss Re, Reinsurance Group of America (RGA), Munich Re and Hannover Re are expecting profit recovery to start.

Bloomberg estimates Swiss Re accounted for around 35% of claims followed by RGA on 27% but the decline in deaths should mean much lower claims for the second half of the year.

Bloomberg reported that Swiss Re booked COVID-19 losses of $972 million last year and $570 million in the first quarter while SCOR Global Life saw a €314 million ($383 million) loss in 2020 and €162 million ($197 million) in the first quarter.

RMS

Munich Re saw €370 million ($451 million) loss from COVID-19 last year and €167 million ($203 million) in the first quarter while Hannover Re’s claims were €261 million ($318 million) last year and €151 million ($184 million) in the first three months of this year.

BI Senior Industry Analyst Charles Graham said: “COVID-19 mortality claims rose sharply in the first quarter after deaths spiked in the US, UK and other countries.

“New variants of the virus remain a threat yet the success of vaccines give reinsurers hope mortality claims won’t return to first quarter levels.”

Print Friendly, PDF & Email

Recent Reinsurance News

Getting your daily reinsurance news from Reinsurance News is a simple way to receive only the reinsurance industry news that matters, delivered directly to your email inbox.

  • Only email is mandatory, but the more you tell us about yourself the better we can serve you in future!
  • This field is for validation purposes and should be left unchanged.

By submitting the form you are giving your consent to be emailed by us.

Read previous post:
Marsh promotes Desmond to lead UK & Ireland Construction Industry

Insurance broker Marsh has appointed Andy Desmond as UK & Ireland Construction Industry Leader. In this role, Desmond will support...

Close