COVID-19

Aon maintains dividend but pulls organic revenue guidance and pauses share buybacks

Despite withdrawing guidance on revenue and margins and pausing share buybacks Aon is maintaining its dividend as it said that it is in a much stronger position than in the last financial crisis when its worst ever year for organic growth was a modest minus 1 percent.

(Re)insurers need all the friends they can get if Covid-19 is an $80bn+ loss

Earlier today, a report from Willis Towers Watson estimates the P&C industry could face up to $140bn in Covid-19 related insured losses in an “extreme” scenario and $80bn in a “severe one”.

MMC shares climb 12% in turbulent April to lead US-listed stocks

Broking titan Marsh & Mclennan Companies (MMC) saw its stock value climb 12 percent in April to lead The Insurer’s universe of US-listed brokers and carriers as stock markets notched up healthy gains last month despite the continued economic shock caused by the coronavirus.

Willis: Covid-19 insured losses could hit $140bn in extreme scenario

Insured losses stemming from the Covid-19 pandemic could be as high as $140bn, according to modelled scenario analysis by Willis Towers Watson.

CCR hands 2019 income to state-backed trade credit backstop as CCR Re posts 98.1% CR

French state-backed carrier Caisse Centrale de Réassurance (CCR) is cancelling its proposed dividend in favour of allocating 2019 net income to the newly launched state-guaranteed Covid-19 reinsurance scheme.

Scor surges 28% in April to lead European P&C stocks

Shares in French reinsurer Scor surged in April to lead The Insurer’s universe of European-listed carriers with its stock up almost 30 percent last month after the near-indiscriminate March equities rout.

Gallagher braces for flat-to-negative organic growth

Arthur J Gallagher’s Patrick Gallagher has said it is possible organic growth may be flat or even negative for a couple of quarters as a result of Covid-19 - while M&A will also slow down - but predicted a rebound next year to organic growth similar to 2019.

Fairfax UW profits climb 17% despite $84.3mn Covid-19 charge

Brit, Allied World and Odyssey Group parent Fairfax Financial reported an improvement in its overall underwriting results but fell to a first quarter net loss of $1.26bn that included preannounced net losses on investments of $1.54bn.

Covid-19 related revenue impact dents AJG organic growth

Covid-19 related changes in estimated revenues have pushed Arthur J Gallagher’s first quarter organic growth down to 3.1 percent for its brokerage segment and 4.1 percent for its risk management segment.

Allianz disappoints analysts with Covid-19 driven 2020 profits warning

Allianz Group preannounced preliminary Q1 earnings that were in line with consensus but said it has pulled its 2020 target range for operating profit in a move that was described as a disappointing “capitulation” by KBW analyst Will Hawkins.

S&P highlights US P&C silent pandemic exposure

In addition to the business interruption liabilities arising from Covid-19 for the US property casualty sector, S&P Global Ratings has commented a number of business lines have silent pandemic coverage exposure.

The Hartford reassures on Covid-19 but still shares fall 8%

The Hartford responded to scrutiny from analysts on its earnings call yesterday about Covid-19 business interruption exposure by stating that an “exhaustive review” of policies confirmed that the “vast majority” of its contracts have a virus exclusion in place.

WTW discretionary spending cuts “probably sufficient” instead of salary reductions

Willis Towers Watson CEO John Haley has commented that cutting discretionary spending “to the bone” means the broker is unlikely to have to reduce staff salaries like its proposed acquirer Aon has in response to Covid-19 pressures.

Pool Re surplus pot in sights of BI hospitality action group

A UK-based action group formed to tackle insurers over rejected Covid-19 business interruption claims has gone to the Chancellor of the Exchequer, calling on Rishi Sunak to release excess Pool Re funds to support the hospitality industry throughout the global pandemic.

Swiss Re CFO holds firm on retroactive BI measures; provides bullish outlook on rates

Swiss Re will fight any attempt which forces the carrier to provide retroactive cover for Covid-19 losses, CFO John Dacey has said.

Swiss Re leads Covid-19 industry loss table

In its first quarter trading statement today, Swiss Re disclosed the industry’s largest estimate yet for Covid-19-related losses while Bermuda-headquartered carrier Lancashire pegged its “provisional” net loss at a modest $35mn.

ICA engages consultants for future pandemic insurance solution

The Insurance Council of Australia (ICA) has revealed it is working with actuarial consultants Finity to design a form of pandemic insurance in Australia as the trade body reports its member insurers have faced claims totalling A$4.6bn ($3.01bn) since September last year.

Swiss Re shares dip on Q1 loss; posts $476mn Covid-19 estimate

Swiss Re has posted the industry’s largest loss estimate yet at $476mn divided between its P&C reinsurance arm ($253mn) and its turnaround Corporate Solutions division ($223mn).

Thompson BI bill loses momentum in Congress as three co-sponsors withdraw

Three of the original nine co-sponsors of a bill introduced in Congress by Representative Mike Thompson earlier this month have withdrawn, suggesting the retroactive business interruption (BI) legislation has lost some momentum.

The Hartford set to face earnings call scrutiny over Covid-19 BI claims

Investors will be hoping for clarity around policy wordings and virus exclusions when The Hartford faces analysts on its earnings call tomorrow after the US insurer disclosed in its 10-Q that it is experiencing increased property claims in the context of Covid-19 related business interruption.

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