NU Online News Service, March 16, 1:56 p.m.EST

Modeler EQECAT has come up with aninsured loss estimate of between $12 billion and $25 billion forwhat is now being called the Tohoku earthquake in Japan, as ACELtd. and SCOR have released individual preliminary estimates oftheir losses due to the magnitude 9.0 March 11 quake.

ACE said net after-tax losses in the first quarter from theearthquake, for both insurance and reinsurance, will be $200million to $250 million, but the details are still unfolding.

SCOR said its total property and casualty losses from the Japanearthquake will not exceed $257.9 million before tax.

Shortly after the earthquake, AIR Worldwide released an insuredloss estimate of $15 billion to $35 billion, which does not includelosses from the tsunami.

If ACE’s range of losses is accurate, it basically doublesestimated losses of $210 million that the insurance and reinsurancecompany said it incurred during the first quarter from the NewZealand earthquake, Australian floods, Cyclone Yasi in Australiaand U.S. winter storms. About $155 million of the total is due tothe New Zealand quake, ACE said.

In a statement, SCOR said its view is that the “final total lossfrom these events [earthquake and tsunami] should be lower thanthis maximum amount,” based on information available to the globalreinsurer now. The company covers industrial and commercial risksas a reinsurer of domestic companies and as a reinsurer of the“Kyosai,” a cooperative pool of risk.

QBE said its preliminary estimate of the net claims from theearthquake and following tsunami in Japan is around $125million.

A briefing from rating agency A.M. Best said cooperativeinsurers “will be hit severely.” The areas most affected by theearthquake and tsunami are considered non-industrial fishing andfarming villages, so the presence of cooperatives is strong.

SCOR also said its investment portfolio has an exposure to Japanof below $55.7 million—primarily in government bonds. However, thecompany said it is not affected by earthquake and tsunami.

Rating agency Moody’s listed SCOR as one of a group of the majorglobal reinsurance players to be affected by the earthquake. Thelist also includes Munich Re, Swiss Re, Hannover Re, BerkshireHathaway and Partner Re.

ACE is included in a list of international companies Moody’ssaid is most exposed to commercial lines in Japan, but companies onthat list—which includes Chartis, Allianz and Zurich—have only asmall market share.

A.M. Best said the insured losses of “major players” are notexpected to exceed $14 billion. Reserves of these companies stoodat about $31 billion as of March 31, 2010, A.M. Best said.

Losses related to residential buildings caused by earthquake orvolcanic eruption, or subsequent tsunami, will be covered by theJapanese Earthquake Reinsurance Co. (JER).

EQECAT said $2 billion to $4 billion of insured losses will beceded to the JER.

The loss estimate from EQECAT included the earthquake, tsunamiand fires, as well as losses to automobiles, marine, life andpersonal insurance lines. The estimate does not include lossesassociated with nuclear power plants.