NU Online News Service, April 19, 12:43 p.m. EDT
AXIS Capital Holdings’ expected financial impact of $285 million from the March 11 Japan earthquake and tsunami headlines the latest round of loss estimates from Bermuda companies.
The specialty insurer says losses from the event are expected to primarily impact the company’s reinsurance segment. “The company has assumed a total loss to a significant local reinsurance program that provides coverage to a cooperative mutual with significant market share in the regions affected by the earthquake and tsunami,” AXIS Capital says in a statement, adding that the net loss to the company's insurance segment is not expected to exceed $25 million due to reinsurance coverage limiting net retentions in that segment.
AXIS Capital says the loss projections are net of tax, reinsurance recoveries and reinstatement premiums, and assume an industry loss of between $30 billion and $35 billion, excluding losses assumed by the Japanese government.
RenaissanceRe Holdings says it expects a net negative impact from the quake of approximately $220 million. “Net negative impact includes the sum of estimates of net claims and claim expenses incurred, earned reinstatement premiums assumed and ceded, lost profit commissions, redeemable non-controlling interest and other income in respect of ceded reinsurance contracts accounted for at fair value,” the company says in a statement.
Argo Group International Holdings, Ltd. says its preliminary pretax loss estimate for the event is approximately $60 million, net of reinsurance and reinstatement premiums.