Reinsurance News
COVID-19 news
News about the impact of the global COVID-19 coronavirus pandemic and how it affected insurance and reinsurance markets.
COVID-19 sees Everest Re’s Q1 profits plunge $338mn
7th May 2020
Global re/insurer Everest Re Group has reported a net income for the first quarter of $16.6 million, down from $354.6 million in the prior year quarter. After-tax operating income for the quarter was $164.4 million, compared to $282.4 million in 2019. Much like with other players in the re/insurance space, COVID-19 related ... Read the full article
Munich Re’s Q1 profit falls as COVID-19 losses reach €800mn
7th May 2020
Reinsurance giant Munich Re has reported COVID-19 related losses of roughly €800 million in the first-quarter of the year, leading to a 65% year-on-year decline in net profit to €221 million. At the same time, Munich Re's operating profit declined from the €771 million recorded in Q1 2019 to €397 million ... Read the full article
COVID-19 related market turmoil pushes Prudential to $271mn Q1 net loss
6th May 2020
Prudential Financial, Inc. has reported a net loss of $271 million for the first-quarter of 2020, driven by significant net realised investment losses, impairment related losses, and losses related to market experience updates. A net loss of $271 million compares with net income of $932 million reported for the same period ... Read the full article
COVID-19 risk sees Fitch turn negative on AIG Life and holding company
6th May 2020
Fitch Ratings has revised the rating outlook to negative from stable for AIG Life and the holding company, citing the economic fallout and financial market stress being caused by the ongoing COVID-19 outbreak. At the same time, global financial services ratings agency Fitch has maintained its stable outlook on AIG's P&C ... Read the full article
Crawford & Co. reports goodwill impairment hit, Q1 net loss
6th May 2020
Crawford & Company, an independent provider of claims management and outsourcing solutions to carriers, brokers and corporates, has reported a net loss of $11.4 million for the first-quarter of 2020, compared with income of $6.1 million in the prior year quarter. In Q1, the company incurred a non-cash pre-tax goodwill impairment ... Read the full article
TransRe takes $153mn Q1 hit from COVID-19
6th May 2020
Investment holding company Alleghany Corporation has seen the combined ratio of its reinsurance business TransRe increase 13.5 points in the first quarter to 107%, due to significant catastrophe losses primarily related to the coronavirus pandemic. TransRe’s net premiums written increased 9.3% in Q1 from the first quarter of 2019, primarily reflecting ... Read the full article
Hiscox reports 2% growth in Q1, expects COVID-19 to drive rate hardening
6th May 2020
Specialist insurer and reinsurer Hiscox has reported gross written premium (GWP) growth of 2% to $1.18 billion for the first-quarter of 2020, driven by solid growth in the firm's Retail and London Market units, somewhat offset by a planned decline in Hiscox Re & ILS. Broken down, and the re/insurer has ... Read the full article
RGA falls to $88mn Q1 loss, sees above-average mortality claim frequency
6th May 2020
Reinsurance Group of America (RGA), a global provider of life reinsurance, has reported a net loss of $88 million for the first-quarter of 2020, driven primarily by movements in embedded derivatives as a result of COVID-19-induced financial market volatility and adverse impacts on credit spreads. A net loss of $88 million ... Read the full article
AXA Q1 revenues up 4%, 2020 earnings to be “materially impacted” by COVID-19
6th May 2020
Global insurer AXA has posted solid revenue increases across the board for the first quarter, but warned that the coronavirus pandemic will have a material impact on the group’s earnings in 2020. Total revenues were up 4% with growth in all business lines, with Property & Casualty (+3%), driven by Commercial ... Read the full article
Two months of retro BI coverage could wipe half of insurers’ capital: AM Best
6th May 2020
New analysis by ratings agency AM Best suggests that industry capital backing re/insurers writing business interruption insurance could decline by as much as 50% if legislated policy changes force carriers to pay for two months of retroactive coverage on COVID-19-related claims. AM Best believes forcing insurers to pay for COVID-19-related business ... Read the full article
Hiscox confirms capital raise, cites reinsurance opportunities
6th May 2020
Hiscox has announced that it plans to raise around £375 million in a share issuance that the company says will enable it “to respond to future growth opportunities and rate improvement” in the US wholesale and reinsurance markets. The confirmation comes after speculation about the re/insurer's liabilities from the COVID-19 ... Read the full article
Rating agencies downgrade AXIS, company responds
6th May 2020
Global financial services ratings agencies have taken actions against AXIS Capital and its subsidiaries, citing the economic impact of the coronavirus (COVID-19) pandemic and a deteriorating operating performance. Specifically, Fitch Ratings has revised its outlook for AXIS from stable to negative, citing the economic impact of the pandemic. At the same time, ... Read the full article
Lloyd’s updates 2021 business plan process amid COVID-19
6th May 2020
Insurance and reinsurance marketplace Lloyd’s of London has laid out its process for agreeing 2021 business plans and capital requirements, which it says now reflect the challenges posed by COVID-19. The approval process for business plans will involve a three-tiered approach, following on from the pilot of Lloyd’s ‘Light Touch’ approach ... Read the full article
COVID-19 dents Hannover Re’s P&C result, Group net income still up 2.5%
6th May 2020
Reinsurance giant Hannover Re has reported an increase in net income to €300.9 million for the first-quarter of 2020, as an improved performance within Life and Health (L&H) more than offset the impacts of COVID-19 on the reinsurer's Property and Casualty (P&C) reinsurance unit. Group net income improved by 2.5% in ... Read the full article
Gallagher introduces COVID-19 cover for India’s frontline workers
6th May 2020
International insurance and risk management organisation Gallagher has announced the release of a Pandemic Group Insurance product, featuring COVID-19 indemnity cover solution to the India market. The product is for essential workers and front-line services including hospital and healthcare providers, food distribution, and pharmaceutical manufacturers. Coverage is applicable only if the insured ... Read the full article
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