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The subject of how a second wave of the Covid-19 pandemic would be treated under reinsurance contracts came up during insurance giant Allianz’s earnings call this week and the companies CFO said that he’d expect it to be classed as a second loss event.

AXA XL, the commercially focused insurance and reinsurance arm of the global AXA Group, has suffered a loss for the first-half of the year, as losses from the Covid-19 pandemic hit its commercial books of business.

UK insurance group Aviva has revealed that its gross losses from the Covid-19 pandemic rose to around US $580 million for the first-half of the year, but the company expects its reinsurance panel will take roughly 63% of the costs of its hands.

U.S. primary insurer and global re/insurer Liberty Mutual has reported suffering an elevated level of catastrophe losses in the second-quarter, as U.S. severe weather affected the firm, as well as a $529 million loss from the Covid-19 pandemic, all of which sent the company to a loss for the period.

Global reinsurance giant Munich Re turned a €579 million profit in the second-quarter of the year despite suffering around €700 million of losses from the Covid-19 pandemic during the period.

German reinsurance firm Hannover Re expects that as its losses from the Covid-19 pandemic convert from IBNR reserves to reported claims, a proportion of these will be ceded to third-party investors in its K-Cessions sidecar vehicle.

TransRe, the reinsurance arm of Alleghany Corporation, has reported a 75% increase in its loss reserves for the Covid-19 pandemic in the second-quarter of the year, with an estimated loading for expected international property business interruption claims a factor.

AIG is expecting its Covid-19 losses will trigger a reinsurance recovery under its international catastrophe treaty, while its losses are also mounting in the United States and have eaten half-way through its U.S. cat treaty retention, President and COO Peter Zaffino explained yesterday.

Reinsurance firm Hannover Re has more than doubled the size of its net reserve for losses from the Covid-19 pandemic, lifting it from €220 million at the end of Q1 to now €600 million for the first-half of 2020.

A number of insurance-linked securities (ILS) fund managers established side pockets to segregate potential exposures related to the Covid-19 pandemic in June 2020, while some ILS and collateralised reinsurance funds also suffered adverse reserve development related to prior year catastrophes as well.