Inside FAC May 2020
Just about everyone on the planet will have some thoughts on what they miss about pre-lockdown days and what they look forward to returning to, once things are back to ‘normal’.
The product recall market is likely to see claims activity for Covid-19-related BI losses from restaurant foodborne illness/contamination policies which cover contagious disease
Lloyd’s has estimated that total (re)insurance industry losses arising from the Covid-19 pandemic are likely to reach around $107bn for full-year 2020.
AIG reported a steep decline in operating profits for the first quarter of 2020, with a result of $99mn, as coronavirus-related losses took their toll.
AGCS fell to a EUR141mn ($152.7mn) operating loss for the first quarter of 2020 (from a Q1 2019 profit of EUR106mn) as the Allianz group reported a EUR700mn Q1 loss due to Covid-19.
The financial impact of the Covid-19 outbreak has started to take its toll on the reinsurance sector as carriers’ predicted losses filtered through in first-quarter earnings releases.
Hiscox has raised gross funds of £375mn ($466mn) with the placing of around 58 million shares at a price of 650 pence.
Washington DC councillors voted down a provision to compel insurers to pay business interruption (BI) claims, even if the policies written by them expressly exclude pandemic cover.
Willis Towers Watson has published an analysis of the impact of the Covid-19 pandemic in which it said insured losses could reach $140bn under the most extreme scenario.
Swiss Re reported a group net loss of $225mn for the first quarter of 2020, as an underwriting loss of $476mn linked to Covid-19 and a pandemic-related investment loss of $300mn took their toll.
UBS has increased its insured loss estimate for Covid-19 to a range of $30bn-$60bn, from its previous range of $20bn-$40bn, with BI and credit and surety claims the two main drivers of losses.
PwC has estimated that total Covid-19 losses for the Lloyd’s market could be £3.4bn ($4.25bn), net of reinsurance.
The Association of British Insurers (ABI) has revealed that its members expect to pay out more than £1.2bn ($1.48bn) in Covid-19-related claims.
Legislators in Pennsylvania have proposed a bill which would force insurers to retroactively pay business interruption (BI) claims related to the Covid-19 outbreak.
Aon’s first-quarter results for 2020 included organic revenue growth of 9 percent in its Reinsurance Solutions segment, driven by “solid growth in facultative placements”.
Navigators’ Syndicate 1221 has pulled out of writing downstream energy and power business at Lloyd’s.
Product recall is rapidly becoming a bifurcated market under lockdown conditions
With the company’s independence guaranteed by BCI and PCP’s recent investment, the BMS fac team says it is in an “advantageous position” to exploit market consolidation.
Bushfires, the coronavirus and continuing fallout from the Hayne Royal Commission review have placed the (re)insurance sector in Australia under fierce scrutiny in recent months, writes Helen Yates
As a low-frequency, high-severity risk, environmental impairment liability has remained relatively profitable in the years since Deepwater Horizon, finds David Benyon
Liberty Specialty Markets has promoted its head of energy, property and construction claims, Gavin Coley, to London head of specialty claims.