Specialist insurer Beazley BEZG.L 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.

“As our book of business is heavily weighted to the U.S. and UK with largest segment being conferences, our clients are still largely unable to operate as restrictions on holding events persist,” the company said in a trading statement on Tuesday.

The claims rise, which is net of reinsurance, will offset what the firm described as “improving growth prospects across our portfolios of business”, primarily driven by continuing rate improvements, with an overall rate rise of 13% at end-August.

Beazley said it has considered the recent Financial Conduct Authority judgement on business interruption wording and does not expect this outcome to have a material impact on its business.