US insurers’ coronavirus costs are less than feared so far

NEW YORK: The coronavirus pandemic dealt a relatively modest US$2.5bil blow to five insurers with large US operations in the second quarter – a cost that was far less than feared and which the industry has absorbed without touching capital, according to analysts.

American International Group Inc and Chubb Ltd said payouts on claims related to the disease accounted for most of their financial hit, which was mostly on property and casualty policies.