(Reuters) – Zurich Insurance coverage’s life insurance coverage and property/casualty companies have taken successful from the COVID-19 pandemic, however rising business insurance coverage charges will present assist, its chief monetary officer mentioned on Thursday as the corporate reported a 40% revenue drop.
Insurers have been hit throughout the board by pandemic-related claims together with for journey, enterprise interruption and occasion cancellation, along with life insurance coverage.
“It’s been a relatively extraordinary six months,” CFO George Quinn mentioned. “The challenge is not over.”
Europe’s fifth-largest insurer mentioned it anticipated COVID-19 associated insurance coverage claims at its property/casualty enterprise to be $750 million for the total 12 months, the identical degree it indicated in May.
Zurich’s first-half enterprise working revenue fell 40% to $1.7 billion, hit by payouts linked to the pandemic and weaker monetary markets, however it was in step with analyst forecasts for $1.69 billion.
The corporate mentioned the coronavirus outbreak had lowered its working revenue by $686 million.
Mr. Quinn informed Reuters the influence on the insurer’s life insurance coverage enterprise can be round $120 million, primarily based on claims and coverage adjustments.
As well as, claims associated to civil unrest, primarily in america, totaled $122 million, Mr. Quinn mentioned.
The port warehouse explosion in Beirut final week was not more likely to signify a significant loss for the insurer, he informed a separate media name.
Zurich mentioned its business insurance coverage charges rose 8% within the first six months, however Mr. Quinn mentioned rises accelerated within the second quarter and the development was “really positive.”
Internet revenue fell 42% to $1.18 billion, additionally in step with consensus forecasts. The mixed ratio at Zurich’s property/casualty enterprise weakened to 99.8% versus 95.1% a 12 months earlier.
Zurich’s shares fell 1.2% on the open, in contrast with a 1% fall in European insurance coverage stocks.
JP Morgan described the outcomes as “fractionally ahead,” reiterating their obese ranking.
