Reinsurance News
COVID-19 news
News about the impact of the global COVID-19 coronavirus pandemic and how it affected insurance and reinsurance markets.
Courts rule insurers not responsible for COVID-19 BI losses
11th August 2020
American multinational investment bank, Morgan Stanley (MS), has commented on a decision made by the Superior Court of D.C. which finds that the COVID-19 pandemic does not cause direct physical damage which would be a required trigger for business interruption (BI). According to MS, this ruling offers further support for its ... Read the full article
Berkshire Hathaway P&C reinsurance loss driven by Covid-19 & prior year liabilities
9th August 2020
Berkshire Hathaway reported a significant level of losses within its property and casualty reinsurance business for the second-quarter of 2020, as the impacts of the Covid-19 pandemic and negative prior year reserve development on longer-tailed liabilities drove the division to a loss for the period. Overall, Warren Buffett's Berkshire Hathaway reported ... Read the full article
Reinsurers to absorb £276mn of Aviva’s COVID-19 losses
7th August 2020
Alongside the release of its H1 results, UK insurer Aviva has reported that its reinsurance program is set to absorb £276 million of its COVID-19 losses. Aviva said that the impact of the pandemic on incurred claims losses is estimated at £441 million, or £165 million net of reinsurance. Overall, the company ... Read the full article
Intangible assets a “major blind spot” amid COVID-19: Lloyd’s & KPMG
6th August 2020
The acceleration of digital business models, amplified by COVID-19, could lead to intangible assets becoming a “major blind spot” for companies not factoring them into their risk models. This is according to a new report published by Lloyd’s and KPMG, which urges businesses to pay attention to the new risk landscape ... Read the full article
Liberty Mutual’s Q2 result hit by elevated cats & significant COVID-19 losses
6th August 2020
Liberty Mutual Holding Company Inc. has recorded a net loss of $320 million for the second-quarter of 2020 amid elevated catastrophe losses and significant impacts from the ongoing COVID-19 crisis. All in all, Liberty Mutual's catastrophe losses jumped by a substantial $384 million from the second-quarter of 2019 to $878 million, ... Read the full article
United (UPC Insurance) returns to profit in Q2; COVID-19 impact immaterial
6th August 2020
Property and casualty (P&C) insurance holding company, United Insurance Holdings Corp. (UPC Insurance), has returned to profitability in the second-quarter of 2020, posting net income of $24.3 million and a combined ratio of 99.4%. These figures compare with a net loss of $2.9 million in the second-quarter of 2019 and a ... Read the full article
AXA’s underlying earnings fall to €1.9bn amid 72% decline in P&C on COVID-19
6th August 2020
Global insurer and reinsurer AXA has reported a 48% decrease in underlying earnings to €1.9 billion for the first half of 2020, driven mostly by a 72% decline in property and casualty (P&C) business primarily as a result of the impacts of the COVID-19 pandemic. The French re/insurer has reaffirmed its ... Read the full article
Everest Re’s combined ratio deteriorates to 97.5% in Q2
6th August 2020
Bermuda-based reinsurer Everest Re Group, Ltd. has reported underwriting income of $50.9 million for the second-quarter of 2020, despite incurring $160 million in net pre-tax losses related to the ongoing COVID-19 pandemic. The reinsurer says that its underwriting result highlights the underlying strength and sustainable profitability of the franchise. Underwriting income of ... Read the full article
Munich Re adds €700m of COVID-19 losses in Q2 as profit falls to €579m
6th August 2020
Global reinsurance giant Munich Re added roughly €700 million of COVID-19-related losses in the second-quarter of 2020, contributing to a decline in profit for the quarter to €579 million, compared with €993 million a year earlier. The additional €700 million of COVID-19 losses takes the reinsurer's H1 2020 impact from ... Read the full article
AIG expects to recover COVID-19 losses under cat reinsurance: Zaffino
5th August 2020
Insurer and reinsurer AIG anticipates making a recovery under its international per-occurrence catastrophe reinsurance treaty as a result of COVID-19-related losses, according to Peter Zaffino, President and Global Chief Operating Officer (COO) of AIG, and Chief Executive Officer (CEO) of the General Insurance (GI) unit. Speaking during the company's second-quarter 2020 ... Read the full article
RGA’s net income falls in Q2 as firm sees global COVID-19 claims of $300mn
5th August 2020
Life reinsurer, Reinsurance Group of America, Incorporated (RGA), saw its net income fall by $44 million in the second-quarter of 2020 to $158 million, as the firm reports global COVID-19 claims, including IBNR, of an estimated $300 million. Net income fell from the $202 million posted in Q2 2019 and for ... Read the full article
Allianz sees Q2 net income fall by 28.6% as pandemic dents P&C result
5th August 2020
Global insurer Allianz has announced second-quarter operating profit of €2.6 billion and a 28.6% dip in net income to €1.5 billion, while the COVID-19 pandemic served to dent the performance of its property and casualty (P&C) insurance division in the period. Overall, Allianz saw its operating profit fall by almost 19% ... Read the full article
Hannover Re’s H1 net income falls as COVID-19 reserves hit €600mn
5th August 2020
Global reinsurance giant Hannover Re has reported a 39.3% decline in net income for the first six months of the year to €402.4 million, as the firm set aside additional reserves of €380 million for estimated losses associated with the ongoing COVID-19 pandemic. The increase in reserves means that the reinsurer ... Read the full article
COVID-19 related market dislocation could benefit US captives: AM Best
4th August 2020
A new AM Best report suggests that firming commercial insurance prices and impacts from the COVID-19 pandemic could present opportunities for the US captive insurance segment to increase its footprint in several lines of business. US captive insurers are meant to have continued their run of strong financial results in 2019, with ... Read the full article
COVID-19 clean-up in P&C continues at mid-year renewals: Swiss Re
4th August 2020
Global insurance and reinsurance companies continue to work to remove COVID-19 and pandemic exposures from their property and casualty (P&C) businesses, note executives at Swiss Re. The unprecedented impacts of the ongoing pandemic have been challenging for risk transfer market participants of all shapes and sizes, with some of the largest ... Read the full article
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