NU Online News Service, Feb. 28, 11:19 a.m.EST

Flagstone Reinsurance Holdings said losses from naturalcatastrophes in Australia during the first quarter are expected tobe between $60 million and $80 million, while Validus Holdings saidlast week’s Christchurch, New Zealand earthquake could cost thecompany between $25 million and $50 million.

Validus said its preliminary loss estimate for the quake is based on commercial catastrophemodel vendors and the company’s analysis. The company noted thatthis event will produce greater losses for it than last year’s 7.1magnitude earthquake in New Zealand.

Validus said it believes insurance industry wide losses from theevent could run somewhere in the range of $6 billion to $7.5billion.

Flagstone Re said it is too early to estimate its claims fromthe earthquake, but noted, “The company is protected by multiplelayers of reinsurance which could be triggered should this lossprove to be significant. This event is expected to cause sizablelosses to the insurance industry.”

Guy Carpenter said the New Zealand earthquake will not be thetype of event to harden the reinsurance market. DavidFlandro, global head of business intelligence for the reinsuranceintermediary, said global reinsurance capacity remains more thanadequate.

Luxembourg-based Flagstone Re said the catastrophes in Australiaduring the 2011 first quarter include flooding in Queensland andVictoria in January as well as February’s Tropical Storm Yasi,which also struck Queensland.

The loss estimate is based on Flagstone Re’s modeling analysis,assessment of treaties and client data, and third-party models.

Bermuda-based PartnerRe Ltd. and XL Group have also releasedAustralia-related loss estimates. PartnerRe Ltd. has said itis estimating 2011 first-quarter losses fromcatastrophe activity in Australia to be between $80 million and$110 million. XL Group said it expects losses from the January flooding to bebetween $75 million and $95 million.

Additional reporting by Mark E. Ruquet