Post-pandemic consumer pain is insurers’ gain

  • 10/27/2021
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LONDON, Oct 27 (Reuters Breakingviews) - As the old proverb goes, it’s an ill wind that blows nobody any good. On Wednesday, French insurer Scor’s (SCOR.PA) share price soared over 10% after it posted a better-than-expected loss in the three months ending Sept. 30. Investors were granted a 200 million euro buyback and the 5 billion euro insurer’s premium sales were up 13% versus the same period in 2020. Insurers have had a torrid pandemic. Business interruption claims and a dismal travel insurance market have meant shares of the likes of Allianz (ALVG.DE), Axa (AXAF.PA) and Munich Re (MUVGn.DE) have still not returned to their pre-virus levels. Scor’s numbers, however, show a benefit from a post-pandemic surge of policy renewals which Scor was able to charge more for, because companies have busted through their no-claims terms. Better still, most insurers are in the same boat, meaning Scor can write stingier conditions without losing customers. Happy days, except for everyone else. (By Aimee Donnellan)Heineken may be through its dry patch read more DraftKings’ $23 bln M&A flop may have a sequel read more Petrofac adds new data point to market exuberance read more Scarcity value pushes Covea to revive an old deal read more Tesla rents a runaway $1 trillion valuation read more

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