Insurer Hiscox swung to a huge loss for 2020 today and continued to withhold a dividend due to a spike in business insurance claims from the Covid-19 pandemic.
This comes after it lost a high-profile court case over policy wordings earlier this year.
Hiscox is part of a group of insurers that had argued many business interruption policies did not cover disruption after UK government measures to curb the coronavirus.
It posted a pre-tax loss of $268.5m for the 12 months ended December 31, compared with a profit of $53.1m a year earlier.
"Hiscox has undoubtedly suffered some brand damage this year," the British company said.
The company has reserved $475m for pandemic-related claims, with the largest share of losses marked for event cancellation and abandonment, and the second biggest being business interruption (BI) covers.
Hiscox, which had raised its estimate for BI claims by $48m to nearly $190m after the verdict, said it was now paying covered claims as quickly as possible.
While insurers have begun making interim payments or settlement offers to companies upended by the global health crisis after the case, concerns have been raised about low payouts, with one business offered as little as £13 by Hiscox.
Hiscox also said it was committed to reduce and eliminate by 2030 its insurance, reinsurance and investment exposure to coal-fired power plants and coal mines as well as several other areas including land mines, as it aligns itself the Lloyd's ambitions announced last December.
