Swiss Re has booked $ 476 million of losses related to COVID-19,mainly for event cancellations,in the first quarter ending in March 2020. The reinsurer has conducted a thorough and prudent analysis of all potential exposures related to COVID-19.
The group's claims and reserves related to COVID-19, at $ 2.5 billion, have resulted in a net loss of approximately $1.1 billion in the first half of 2020. The group'a net income,excluding COVID-19 claims and reserves,of approximately $ 0.9 billion in the first half of 2020.
Around $ 1.5 billion of the first-half losses impact Property & Casualty Reinsurance and approximately $ 0.5 billion impact Corporate Solutions.
The vast majority of these losses are classified as incurred but not reported (IBNR) reserves and are driven by estimates for affirmative property non-damage business interruption and event cancellation losses.
Life & Health Reinsurance is impacted by approximately 0$ .5 billion,mainly as a result of higher mortality claims (reported and IBNR) in the US and the UK versus expected levels.
A range of factors relating to the pandemic,including future infection and mortality rates;the duration and effects of mitigation measures, including on business activity; the timing of an effective vaccine and/or alternative treatment solutions; legislative or regulatory efforts and the outcome of court and arbitration cases on coverage issues; the impact of government stimulus packages;and the severity and duration of recessionary impacts,may impact claims development in the coming quarters, either positively or negatively,relative to Swiss Re’s projections.
The Group is expected to report a US GAAP net loss for the first half of 2020 of approximately $ 1.1 billion.Group net income,excluding the impact of COVID-19 losses.
Swiss Re also announced the completion of the sale of its subsidiary ReAssure Group plc to Phoenix Group Holdings plc following the receipt of all required regulatory and antitrust approvals. The sale has bolstered Swiss Re maintains its industry-leading capital position.
Swiss Re’s Group Chief Financial Officer John Dacey said: “Our capital position remains industry-leading. The underlying performance of all our businesses is strong, and they continue to deliver on their strategic objectives, such as the completion of the ReAssure sale.