Flagstone Reinsurance Holdings, S.A. said its preliminary estimate of its exposure to last month's 7.1 magnitude earthquake in New Zealand is $52.5 million net of reinstatement premiums and retrocession.
Modeling firm AIR Worldwide last month estimated total insured losses of between $2 billion and $4.5 billion for the large quake that hit Christchurch, New Zealand early on Sept. 4, while EQECAT and Risk Management Solutions estimated losses of between $1.5-$2.5 billion.
Flagstone said its loss estimate is based on its proprietary modeling analysis, the assessment of individual treaties and client data, third-party vendor models, and an estimated industry loss of $3.6 billion.
David Brown, Flagstone CEO, said, "As a global reinsurer, we expect to incur losses in international events such as this. However, as a result of our diversified portfolio, and based upon our current estimate, we expect to produce positive growth in book value per share for the quarter."
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