Last checked at 
* Clients unable to operate as restrictions on events
persist
* Shares down 15% at 333.4 pence, on track for worst-ever
day
* Higher claims seen due to exhaustion of reinsurance market
- CEO
(Adds CEO comments, share move, graphic)
By Sinead Cruise and Muvija M
LONDON, Sept 22 (Reuters) - Specialist insurer Beazley
is bracing for claims linked to the novel coronavirus
pandemic to double to $340 million, with almost all the
estimated increase arising from events cancelled in the wake of
a recent spike in infections.
Shares in the London-based company, whose business is
heavily weighted towards the U.S. and UK, had slumped 15% in
their worst one-day fall on record by 0707 GMT.
"With the largest segment being conferences, our clients are
still largely unable to operate as restrictions on holding
events persist," Beazley said in a trading statement on Tuesday.
The forecast claims rise, which is net of reinsurance,
offsets what the firm described as improving growth prospects
across its wider business portfolio, primarily driven by higher
insurance premium rates, with an overall rate rise of 13% at
end-August.
Beazley boss Andrew Horton also blamed the hike in the
claims estimate on exhaustion in the reinsurance market, in
which insurers look to hive off a portion of their exposures to
other insurers.
"We estimated some return normality in September,"
Horton told Reuters, adding that he didn't expect conferences to
resume until the second quarter of next year.
The Lloyd's of London syndicate member said that if this
prediction proves inaccurate, claims could rise by a further $50
million net of reinsurance.
"The magnitude of the increase is somewhat surprising and we
believe reflects an exhaustion of the reinsurance cover,"
analysts at JP Morgan said, as it forecast a $123 million fall
in full-year pretax profits to a $55 million loss.
Beazley said it had considered the recent Financial Conduct
Authority judgement on business interruption wording and did not
expect the outcome to have a material impact on its figures.
Fellow Lloyd's syndicate member Hiscox said in April
it expected to pay up to $175 million to settle claims arising
from travel, events and mass gatherings cancelled in the wake of
COVID-19, if disruption from the pandemic lasted more than six
months.
(Reporting By Sinead Cruise in London and Muvija M in
Bengaluru, editing by Carolyn Cohn, Kirsten Donovan)
