Earnings

Alleghany reported an underwriting loss after its reinsurance segment took a $153mn charge tied to Covid-19-related losses. Underlying margins at TransRe and RSUI improved overall.

The New Jersey-based carrier lowered full-year 2020 guidance on both underwriting and net investment income based on expectations of top-line and alternative investment income pressures.

In the quarter, Allstate’s 15% premium refund contributed 2.4pts to its headline combined ratio.

Tuesday’s call included an interesting shift in tone from AIG CEO Brian Duperreault, who suggested the company would “continue to look at” the possibility of a break-up of P&C and life.

AIG “remains in a strong financial position” despite the pandemic, the executive said.

Watford posted a marginal decline in underwriting performance, with minimal expected exposure to Covid-19-related losses.

Yesterday morning, Mercury General released its Q1 results, which included an earnings beat and a 1.3pt improvement in its headline combined to 95.9%.

The firm just missed analyst estimates after reporting a $65mn Covid-19-related loss in its mortgage segment that accompanied a higher cat loss total in general, causing operating earnings to fall.

Earnings at Axis fell as the company reported $300mn in cat losses – including $235mn stemming from the Covid-19 pandemic – as the carrier continued to show strong underlying improvement.

The company reported operating EPS of $0.40, significantly less than the $1.17 in Q1:19.

Last night featured the most significant “jailbreak” to date, with AIG taking the opportunity to drop its long-term ROE goal.

Pre-disclosed investment losses drag the result down, as the underwriting deficit widens marginally.