Aegon, other insurers hit by US COVID-19 deaths in third quarter – Community News
Covid-19

Aegon, other insurers hit by US COVID-19 deaths in third quarter

AMSTERDAM, Nov. 11 (Reuters) – Dutch insurer Aegon NV (AEGN.AS) on Thursday reported a 16% drop in third-quarter operating profit due to higher COVID-19-related death claims in the Americas, the latest European insurer to suffering from new waves of the pandemic.

Aegon, which does two-thirds of its business in the United States, said “adverse death claims” in America were $111 million in the third quarter, compared to $31 million a year earlier.

“Performance improvements in most of our businesses … were offset by increased death rates in the United States,” Aegon chief executive Lard Friese said in a statement.

Among other European insurers, Swiss Re (SRENH.S) said its life and health division suffered “significantly higher $1.2 billion of COVID-19-related claims” in the first nine months of 2021, “mainly from the U.S. “. CEO John Dacey cited peaks in the US in February and August.

Munich Re also saw a higher-than-expected COVID impact in its results earlier this week.

US company MetLife (MET.N) was hit by its domestic life business with generally strong third quarter results. read more

It said that in the third quarter, 40% of US COVID-19 deaths were attributable to people under the age of 65, “the highest percentage in any quarter since the start of the pandemic”.

In a note, S&P Global Ratings said the world’s largest reinsurance companies bear the lion’s share of COVID-19 losses, as they have “triple exposure” through real estate and casualty and life reinsurance businesses, as well as through primary non-life insurance companies.

Aegon’s operating profit of 443 million euros ($512 million) for July-September compared with a forecast of 490 million euros in an analyst poll compiled by Aegon.

Friese added that Aegon’s fees and investment income were up and the company was meeting different performance targets.

Aegon shares, which rose 34% this year from their closing price of EUR 4.31 on Wednesday, fell nearly 2% on Thursday to EUR 4,228 at 1135 GMT.

($1=0.8648 euros)

Reporting by Toby Sterling, Tom Sims, Carolyn Cohn; Editing by Alexander Smith, Andrei Khalip

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