NU Online News Service, March 30, 3:06 p.m.EDT

Flagstone Reinsurance Holdings puts its losses related to theTohoku earthquake in Japan in the range of $80 million to $130million net of reinstatement premiums and retrocession.

In the meantime, specialty insurer Hiscox says it could getclaims of between $60 million and $150 million.

Flagstone’s retrocession strategy includes buying protection forsingle events and an accumulation of events, and the company hasadditional protection “that is in effect reducing our net exposureto both Japanese and New Zealand losses, particularly at the higherend of our ranges,” says CEO David Brown in a statement.

Flagstone says it expects its losses from the New Zealand quake to be between $60million and $90 million, net of reinstatement premiums andretrocession.

Flagstone’s estimate of Japan losses is based on estimates ofindustry loss of between $25 billion and $35 billion, the companysays. Hiscox says its estimate is based on a model showing insuredmarket loss of $24 billion.

About a week ago, Moody's Investors Service placedLuxembourg-based Flagstone’s financial-strength rating under review due to the company’s expectedlosses from first-quarter catastrophes.

Hiscox Chief Underwriter Officer Robert Childs says the eventsof the first quarter (the company said losses from the New Zealandquake and flooding in Australia will fall between $96.4 million and$241 million) “will only minimally impair our own reinsuranceprogram.” Rates in affected regions have significantly increasedand the company expects “this pressure to become widespread,” headds.