The actions of insurers are at their worst. Helvetia has lost 39% since the start of the year, Swiss Re 34%, Swiss Life 30%, Vaudoise 21%. Their return is lower than the Swiss equity index (SPI -2%). Do these downturns reflect the existence of risks hitherto unknown to the public? The half-year results of the life insurer Swiss Life and the second largest European insurance group, Zurich, presented Thursday, will they reassure investors?
The cost of Covid-19
To date, 33% of European insurers have presented better than expected intermediate earnings and 50% below expectations, according to a Morgan Stanley study. The leaders did not miss this meeting. Allianz, the market leader, and Axa, the third behind Zurich, exceeded expectations in terms of profit. But the pandemic has left traces in their accounts. For the first half of the year, the cost of claims related to Covid-19 (business interruption and event cancellation insurance) amounted to 1.5 billion euros (1.6 billion francs) for Axa and 1.2 billion for Allianz.
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