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Re/insurers’ public COVID-19 losses reach $20.2bn: PeriStrat

27th July 2020 - Author: Matt Sheehan

Data compiled by Zurich-based financial services advisory PeriStrat LLC shows that publicly reported COVID-19 losses among the largest global insurers and reinsurers have now reached $20.2455 billion.

COVID-19Analysts noted that loss estimates have generally trended upwards in second quarter earnings releases.

However, the tracked public loss figure is still less than most of the publicised market loss estimates, indicating that more increased loss estimates are likely to emerge.

Among the highest public loss numbers collected by PeriStrat are Lloyd’s of London at $3.65 billion (the mid-point of its market loss range), Swiss Re at $2.5 billion, and AXA at $1.7 billion.

Following these are Munich Re at $1.66 billion, Chubb at $1.37 billion, Zurich at $750 million, Allianz at $724 million and SCOR at $530 million.

A full list of publicly disclosed COVID-19 loss estimates can be found here, alongside the date on which these figures were released.

PersiStrat noted that there may be some overlap in reported figures as reported insurer losses might partially be reflected reported losses by reinsurers.

Some companies’ reported losses might also overlap with Lloyd’s market number as these companies operate at Lloyd’s as well, such as Hiscox, Beazley, and ARGO.

PeriStrat also recorded a figure of $3.0 billion for FM Global, but noted that this is not a reported loss number, but rather communicable disease coverage it offered in its standard policies that in the aggregate amounts to approximately $3.0 billion in sublimits.

Analysts further acknowledged that the ultimate market loss will depend heavily on the outcome of court rulings on business interruption (BI) wordings.

In the UK, the FCA is currently seeking a general court ruling on this issue, but the outcome is still open.

In the US, meanwhile, it remains uncertain whether potential policymaker interventions could force insurers to respond to COVID-19 BI claims.

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