Thursday 21 May 2020 8:37 am

Aviva estimates covid-19 impact at £160m

Insurer Aviva today estimated the total payout it will have to make because of covid-19 at £160m net of reinsurance.

Aviva said the estimate was based on estimated claims in business interruption insurance, other commercial lines and travel insurance.

The insurer said the coronavirus pandemic “provides unprecedented uncertainty” and “may adversely impact our results”.

Aviva said there was a risk of a decline in investment performance, capital generation and remittances.

It said that new business sales had declined early in the second quarter which it blamed on the coronavirus lockdown.

Yesterday, an action group of hospitality industry businesses said it was looking to sue Aviva over the failure to pay out on business interruption insurance claims stemming from the coronavirus pandemic.

Aviva today estimated claims from business interruption of approximately £200m net of reinsurance.

Aviva said the “vast majority” of its policies do not cover business interruption claims arising from covid-19.

It said: “We anticipate potential areas of exposure in certain specialist schemes and broker programmes, and we have paid claims in the UK and Canada where coverage exists.”

In an operating update to the market, Aviva today said it had experienced a strong first quarter with life new business sales up 28 per cent to £12.3bn and value of new business up 18 per cent to £311m.;

General insurance net written premium gained three per cent to £2.4bn.

Aviva shares rose 1.8 per cent to 243p.