Reinsurance News

AXIS Capital, the Bermuda headquartered specialty insurance and reinsurance company, has revealed an expectation that the Covid-19 pandemic will drive some $235 million of losses, the majority of which will be in its property book.

Insurance and reinsurance broker Aon has revealed a raft of pay cuts affecting its staff around the globe, as well as other expense saving initiatives, all of which reflects the expectation that the broking industry may face particularly acute pain as a result of the Covid-19 economic slowdown.

The Association of British Insurers (ABI) has estimated that UK insurance companies face around £1.2 billion of losses due to the Covid-19 pandemic, but analysts said this figure is likely to rise and the number does not include losses falling to the Lloyd’s market.

While global reinsurance capital grew strongly again in 2019 the underlying results of the traditional reinsurance market remain less impressive, with the return on equity (RoE) of a subset of the market declining further and falling well below the industry’s cost of capital, broker Willis Re said today.

Senior insurance and reinsurance industry executives Evan Greenberg, Chairman and CEO of Chubb, and John Neal, CEO of Lloyd’s of London, both agree that the global pandemic caused by the coronavirus could result in the largest industry loss for the sector in history.

Analysts from investment bank UBS have added 50% to their estimate for the eventual insurance and reinsurance industry loss from the Covid-19 coronavirus pandemic, lifting the top-end of the range to $60 billion.

The United States has experienced a vigorous and deadly start to the convective storm and tornado season in 2020, with five billion-dollar economic loss events caused by the peril already this year, according to Aon’s Impact Forecasting unit.

Global insurance and reinsurance group Everest Re has warned the market that it is reserving for a potential $150 million hit to its business from losses due to the Covid-19 coronavirus pandemic.

Business interruption claims from the Covid-19 coronavirus pandemic pose an “existential threat” to the entire reinsurance industry, broker Willis Re said today.

The property and casualty (P&C) insurance industry loss from Covid-19 pandemic related claims is estimated in a range from $40 billion to as high as $80 billion by analysts at Dowling & Partners.