Tokio Marine suffers $400m loss from Taiwan COVID-19 cover payouts

The loss will reflect in the quarter ending September.

Japanese insurer Tokio Marine Holdings will suffer a loss of JP¥53.9b ($410m) in the July to September quarter.

These losses come from the massive payouts in COVID-19 insurance from the group’s Taiwanese arm, Tokio Marine Newa Insurance. The insurer offered coverage for COVID-19 illnesses or quarantines, signing 940,000 policies.

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A surge in claims was triggered when Taiwan suffered a wave of COVID-19 infections due mostly to the omicron variant.

Tokio Marine Newa Insurance projects a net loss of JP¥110.1b ($830m) for the six months ended June. Since the parent Tokio Marine owns 48.94% of the equity-method affiliate, this translates to the $419n loss whose impact will be booked in the current three months through September.