Reinsurance

The reinsurance industry is well-positioned to absorb first quarter catastrophe losses that could rise as high as $42 billion, according to reports released today, and while pricing is expected to improve, another event may be needed to spur global hardening.

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

Foreign reinsurers may be permitted to post less collateral when doing business in New Jersey with legislation passed that gives regulators the ability to cut previous full-collateral requirements.

Last year was a costly one in terms of dollars and human life as insurers saw their losses from catastrophes increase by 59 percent from the previous year, according to a Swiss Re report.

Early Japan earthquake loss estimates from two major reinsurers are credit negative for the reinsurance industry because they indicate that reinsurers will take the largest share—perhaps even more than half—of insured losses, according to Moody’s Investors Service.

Several Bermuda companies have reported loss estimates from first-quarter catastrophes, but all of the companies excluded the March 11 magnitude 9.0 earthquake that struck Japan, stating that it is too early to give an estimate.