Thursday, July 3, 2025
24 C
Lagos

Chubb Estimates $1.4bn in Q2 Global Losses Tied to Coronavirus

Chubb’s disclosure of second quarter 2020 global net catastrophe losses underscores the damage COVID-19 is doing to some carriers’ bottom lines.

The global property/casualty insurer estimated $1.8 billion in pretax catastrophe losses for Q2, or $1.5 billion after tax. Of that number, close to $1.4 billion in pretax catastrophe losses stem from the coronavirus pandemic, or $1.15 billion after tax. Losses from severe U.S. weather events and U.S. civil unrest constitute the difference, Chubb said.

Chubb released its Q2 catastrophe loss estimates on July 6 after the markets closed.

Coronavirus losses could be an issue for some time, Chubb Chairman and CEO Evan Greenberg suggested during his comments about 2020 first-quarter earnings earlier this year. “In this case the degree of revenue impact is simply unknowable,” Greenberg said at the time.

According to the insurer, its pretax catastrophe loss estimate includes $605 million in short-tail losses generated primarily from entertainment and commercial property-related business interruption and accident and health (A&H) products including travel insurance products, and $553 million in losses related to liability insurance products, including professional liability (directors and officers, employment practices, professional liability, etc.) and workers compensation and other liability-related products.

The estimate also includes $107 million stemming from insurance credit exposures including surety, political risk and trade credit.

Substantially all of the losses for liability and credit-related insurance products are classified as incurred but not reported (IBNR) reserves, Chubb said. The loss estimate also includes a $100 million IBNR provision to account for the additional uncertainty in the estimates around the company’s property, casualty and credit-related exposures, given this unprecedented event.

Approximately 71 percent of the COVID-19 estimate relates to the company’s North America Commercial P/C Insurance segment and 28 percent covers the Overseas General Insurance segment.

 

 

 

spot_img
spot_img
spot_img

Hot this week

Stanbic IBTC Bank Nigeria PMI: Output Growth Slows but Business Confidence Rises Sharply

The Nigerian private sector remained in growth territory as...

NIA: Insurance Week Designed to Boost Industry Awareness in Nigeria

Mr. Kunle Ahmed Chairman Nigerian Insurers Association (NIA) The Nigerian Insurers Association...

NAICOM Chief: The Future of Nigeria Depends on How We Manage Risks

Keynote Address by Mr. Olusegun Ayo Omosehin, Commissioner for...

SEC Canvasses Advanced Financial Inclusion by 2030

The Securities and Exchange Commission (SEC) has stressed the...

NCDMB to Champion “Nigeria First” Policy in Oil and Gas Sector

The Nigerian Content Development and Monitoring Board (NCDMB) has...

Topics

Ebi, Marwa, Ipinmisho, Adedeji, Ndionuka for Realnews 10th Anniversary Lecture

Mrs. Elizabeth Ngozi Ebi, Group Managing Director of Futureview...

MTN Launches Mobile Money API Hackathon

In pursuit of its goal to contribute to bridging...

Buhari Approves Payment of Outstanding Pension Liabilities under CPS

The National Pension Commission (PenCom) has informed all its...

Soludo Receives Certificate of Return from INEC

REMARKS BY BARR FESTUS OKOYE, SUPERVISING NATIONAL COMMISSIONER FOR...

G2O Nations Jeopardise Energy Transition

The G20 nations are at risk of falling short...

Africa Tech Start-Ups Raise $185.7m in 2O15

A new report by Disrupt Africa says a total...

AfDB Approves Policy on Non-Sovereign Operations

The Board of Directors of the African Development Bank...

Sovereign Trust Insurance Pioneer Chairman, Ephraim Faloughi Bags Honorary Doctorate Degree

L-R: Bisola Asaju, AGM/Head, General Internal Services, Segun Bankole,...
spot_img

Related Articles

Popular Categories

spot_imgspot_img