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“As we had believed, the crisis has turned out to be an earnings event for GMIs, and a manageable one — not a serious capital event. That is, no insurer in this group fell into a position where its capital resources became insufficient to meet expectations by regulators,” explained Marc-Philippe Juilliard, S&P Global Ratings analyst. (Credit: Viacheslav Lopatin/Shutterstock.com) “As we had believed, the crisis has turned out to be an earnings event for GMIs, and a manageable one — not a serious capital event. That is, no insurer in this group fell into a position where its capital resources became insufficient to meet expectations by regulators,” explained Marc-Philippe Juilliard, S&P Global Ratings analyst. (Credit: Viacheslav Lopatin/Shutterstock.com)

While 2020 was challenging, the impact on global multiline insurers (GMI) was limited, according to S&P Global Ratings, which noted the pandemic cost the 16 GMIs it rates around $8 billion. Overall, the rated companies saw net income of $36 billion for the year.

While one-off items related to COVID-19 reduced net income by about $12 billion, S&P noted the past year’s income represented an earnings event for the industry, meaning income was impact but solvency was not threatened. GMIs in commercial property & casualty lines were the hardest hit and accounted for more than half of the pandemic-related drop in net income among the 16 GMIs rated by S&P.

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