NU Online News Service, April 1, 1:41 p.m. EDT

Hamilton, Bermuda-based insurer Ariel Reinsurance Co. says it expects first-quarter catastrophe events will cost the company between $35 million and $50 million, but it expects to report positive net income for the period.

The insurer, a subsidiary of Ariel Holdings Ltd., says the catastrophe events in the first quarter of this year include the Christchurch earthquake in New Zealand; Cyclone Yasi; Australian flooding, Gryphon Alpha (a deep well oil rig that went adrift in the North Sea in February); and the Tohoku Earthquake in Japan.

The aggregate cost for the events is net of reinsurance and reinstatement premiums.

The company says that because the events are recent, they "are subject to significant uncertainty and it will be some time before additional information will allow for a reliably accurate loss estimate."

The company says its forecast for reporting a positive first quarter rests on the absence of additional catastrophe events.

Formed in 2005, Ariel Re underwrites property insurance and property, marine, aviation, credit and surety reinsurance through offices in Bermuda, Zurich and Brazil.