Fitch Ratings believes that reinsurers have absorbed significant coronavirus-related losses. According to the rating agency, the overall combined ratio of the reinsurance market increased by 10.4 points during H1 2020 and was set at 101.8% compared to 91.4% in 2019.
Such deterioration is closely linked to business interruptions and cancellation of events caused by Covid-19. Damages caused by natural disasters also contributed to deteriorating the results.
Sirius International Group, Partner Re and AXIS Capital Holdings recorded losses 10% higher than the earned premiums of H1 2020. The losses are due to a high amount of the coronavirus reserves.