NU Online News Service, March 2, 1:13 p.m. EST
Swiss Re said it expects its insured losses from the Feb. 21 earthquake in New Zealand to be approximately $800 million.
The figure, net of retrocession and before taxes, is a preliminary number based on current information, the Zurich, Switzerland-based international insurer said.
"The latest earthquake in New Zealand took a heavy toll in terms of human fatalities, despite the advanced risk prevention measures that are in place in New Zealand," said Stefan Lippe, chief executive officer of Swiss Re, in a statement. "The purpose of insurance and reinsurance is to help individuals and communities cope with the devastating impact of such events. Our role is to enable the people of Christchurch to recover swiftly from this catastrophe."
Swiss Re noted that the estimate was preliminary and that the total range of loss for the insurance industry from the earthquake could be from $6 billion to $12 billion, making this a significant event on a worldwide basis.
The magnitude 6.3 earthquake, which struck the Christchurch region of the South Island of New Zealand, caused fatalities and widespread damage, particularly in the city of Christchurch, Swiss Re noted.
While smaller in magnitude than the September 2010 earthquake, this event was at a shallower depth and significantly closer to the central business district of Christchurch, New Zealand's second-largest city, said Swiss Re.
The insurer noted that take-up rates for earthquake insurance are high in New Zealand. Residential properties are insured by the government-run Earthquake Commission program up to New Zealand dollar 100,000 (U.S. $74,360 at the current exchange rate) per building policy and NZD 20,000 ($14,872) per contents policy.
Householders can purchase private insurance above the NZD 120,000 ($89,232) cover provided by the Earthquake Commission.
Commercial and industrial risks are insured by local and global insurance companies, Swiss Re said.
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