Brit bottom line hurt by Covid-19 claims payouts

Brit has reported a “significant” financial impact from Covid-19 claims in the first half of the year.

The insurer reported $127.9m (£97m) worth of major losses in its contingency (event cancellation) and casualty treaty books.

The losses added 15.7 percentage points to its combined ratio, which increased to 106.7% from 94.4% for the same half last year.

Overall, Brit posted a loss after tax of $227.4m, compared with a profit of $120.3m in the first half of last year. 

Gross written premium (GWP) however rose by 5.9% for the period, standing at $1.28bn, and premium rates increased by 8.2% with net received premium up slightly by 2.2%.

Chief executive Matthew Wilson cited the impact of Covid-19 on the business so far this year.

”The pandemic is a global crisis, the like of which has not been seen for generations. 

”As well as the devastating human cost, it has created an extraordinarily significant amount of global disruption and economic uncertainty, with the impact on the global economy likely to be felt for many years to come”, he said.

Wilson added that the crisis had impacted many Brit clients. 

”Our products are designed to support businesses and individuals in such difficult times and we have focused on responding to claims as they have been notified. We have stood tall with respect to valid Covid-19 claims.”

He added that Brit’s underwriters ”have been actively engaging with clients and brokers, delivering market-leading responsiveness”.

”Our claims team continues to service our policyholders in these challenging circumstances, proactively working with our TPAs to ensure claims continue to be handled promptly and to our usual high standards.”

In February, Brit announced a strong set up in its annual results after two challenging years, delivering a profit before tax of $186.3m (approximately £127.6m).