Insurance and Covid-19

The insurance industry has not been spared the effect of the health crisis, with all insurers and reinsurers having reported a decline in their turnovers in 2020. This decline was accompanied by a fall in earnings, or even a deficit.

These poor performances are accounted for by:

• non-payment of premiums due to the policyholders’ financial difficulties,
• cancellation of insurance contracts,
• the reduction or suspension of certain company coverages due to the decline or cessation of business,
• an increase in the claims experience and, above all, in life and non-life claim reserves.

Covid-19: losses incurred by insurers and reinsurers

Figures in million USD

Results of insurers and reinsurers during the Covid-19 years

The heavy losses incurred by insurers and reinsurers have inevitably weighed on results, which posted a significant drop in 2020, the worst year.

Figures in million USD

Swiss Re, the reinsurer hardest hit by Covid-19, saw its 2020 net income plummet by 138%, from a positive 1.065 billion USD in 2019 to a loss of 406 million USD in 2020.

Moreover, in 2020, Munich Re and SCOR saw their profits go down by 50%, while Hannover Re's decreased by 24%.

The shareholders' equity of insurers and reinsurers during Covid-19 years

Shareholders' equity fell sharply in 2021, before plummeting in 2022. This sharp decline is more pronounced for direct insurers than for reinsurers. In the case of reinsurers, Swiss Re's equity has almost halved.

Figures in million USD