(Reuters) – The Beazley PLC said on Friday that it had set aside about $ 50 million for expected losses related to the Russia-Ukraine crisis, after the British insurance company reported an increase in quarterly gross income premiums.
The British insurance industry had recovered from real pandemic-related claims, thanks to rising premium rates, before sanctions against Russia and the devastation in Ukraine withdrew the sector when companies filed claims to cover losses from the crisis.
“So far, we have seen a small number of claims regarding the (Ukraine) conflict and we remain confident in our guidance for the total cost percentage of about 90% for the entire year,”; said CEO Adrian Cox in a statement.
Lloyd’s of London insurers said the $ 50 million earmarked for losses from the conflict in Ukraine does not allow for potential claims on planes stranded in Russia, given the complex and insecure environment there.
The rating agency S&P Global said at the end of March that it expected special insurance losses of $ 16 billion to $ 35 billion from the conflict, including claims in aviation, cyber, political risk and naval insurance.
On Thursday, Beazley’s main rival Hiscox set aside $ 40 million for expected losses related to the Ukraine crisis, while Lancashire last month estimated the net losses from the war at about $ 20 million to $ 30 million.
Beazley, which provides accident, property, cyber and political risk insurance, said gross premiums for the three months ended March 31 increased by 27% to $ 1.23 billion due to interest rate growth in its cyber unit, compared to $ 971 million one year earlier.