Aegon, other insurers hit by U.S. COVID-19 deaths in third quarter
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[November 11, 2021] By
Toby Sterling
AMSTERDAM (Reuters) - Dutch insurer Aegon
NV reported a 16% fall in third- quarter operating profit on Thursday
due to higher COVID-19 related mortality claims in the Americas, the
latest European insurer to suffer from new waves of the pandemic.
Aegon, which does two-thirds of its business in the United States, said
"unfavourable mortality claims" in the Americas in the third quarter
were $111 million, up from $31 million a year earlier.
"Performance improvements across most of our businesses ... were offset
by elevated mortality in the United States," Aegon Chief Executive Lard
Friese in a statement.
Among other European insurers, Swiss Re said its life and health
division incurred "significantly higher COVID-19 related claims of $1.2
billion" in the first nine months of 2021 "primarily originating in the
U.S.". CEO John Dacey cited U.S. spikes in February and August.
Munich Re also saw a higher than expected COVID impact in its results
earlier this week.
U.S. firm MetLife was hit at its domestic life operations in generally
strong third-quarter earnings.
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It said that in the third quarter, 40% of U.S. COVID-19 deaths were of people
under 65 years old, "the highest percentage in any quarter since the pandemic
began".
In a note, S&P Global Ratings said that the world's biggest reinsurance
companies bear the lion's share of COVID-19 losses as they have "triple
exposure" through Property & Casualty and Life reinsurance businesses, as well
as through primary P&C businesses.
Aegon's 443 million euros ($512 million) operating profit for July-September
compared a forecast of 490 million euros in a poll of analysts compiled by Aegon.
Friese added Aegon's fee and investment income were up and the company was
meeting other performance targets.
Aegon shares, which were up 34% this year at their 4.31 euro close on Wednesday,
were down nearly 2% at 4.228 euros at 1135 GMT on Thursday.
($1=0.8648 euros)
(Reporting by Toby Sterling, Tom Sims, Carolyn Cohn; Editing by Alexander Smith,
Andrei Khalip)
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