COVID CUTS GLOBAL INSURERS’ 2020 INCOME BY $8BN: S&P

The Covid-19 pandemic reduced earnings at 16 major global multiline insurers by around $8bn in 2020, according to a report by S&P Global Ratings. Total earnings for the year came in at $36bn versus $56bn in 2019 and $48bn in 2018. “The crisis has turned out to be an earnings event for GMIs, and a manageable one – not a serious capital event,” the report said. The limited drops in earnings “show the benefit of running diversified businesses, in terms of both product lines and geographies.” Despite the diversification, European GMIs incurred higher losses, with heavy losses in non-European markets, particularly in commercial property/casualty. The report said the pandemic has hit non-life companies harder, noting there is “a large negative correlation between people insured against death and the segments of the population who have died from Covid-19.” Among the 16 GMIs analysed in the report are AIG, Chubb, Aviva, Axa, Prudential Plc, Zurich and QBE.