Allianz has released a first-quarter financial update for 2020, highlighting that although it expects Covid-19 to cause a recessionary impact on the UK, it believes it is “well-equipped” to meet the challenge. The update is its first since acquiring LV= General Insurance and the general insurance business of Legal & General. Allianz is one of many insurers currently facing the prospect of group legal action over the denial of business interruption claims, but the group gave no indication of the impact it expects claims on these kinds of policies to make.
A report from S&P Global Market Intelligence – the research wing of ratings firm Standard & Poor’s – has highlighted the difference in European motor insurers’ responses to Covid-19. While most companies are seeing a reduction in motor claims, the report said there has been “a patchwork of responses” from providers. Smaller and more specialist insurers have led the way on rebates, it said, with Admiral giving £110m to car and van insurance customers, and LV= General Insurance – now a subsidiary of Allianz – setting aside £30m to compensate financially hard-up customers. But on the other hand, it pointed to UK insurer Direct Line, which said in its Q1 trading update that it is only refunding premiums for motor policyholders who reduce their annual mileage or cancel cover for foreign use of their vehicle. This is in contrast, the report highlights, with the US, where most major car insurers have enacted some form of premium rebate.