Catlin, XL Give Estimates Of NZ Earthquake Losses

NU Online News Service, March  10, 11:04 a.m. EST

Bermuda-based Catlin Group Ltd. and XL Group added to the list of companies who have announced estimated losses from the Christchurch, New Zealand earthquake on Feb. 22.

Catlin said losses from the magnitude 6.3 quake are estimated at about $125 million, net of reinsurance and reinstatements.

XL Group put estimated losses between $70 million and $85 million, mostly attributable to XL's reinsurance segment. The projection is also net of reinsurance and reinstatements, XL said, and are based on expected market losses of between $8 billion and $12 billion.

Each of the companies warned that actual losses may look much different than the preliminary estimates. “It will be many months until the total amount of insured damage and Catlin's claims arising from this catastrophe can be estimated with precision,” Catlin said.

PartnerRe said it expects its losses from the February New Zealand quake to be between $180 million and $240 million. The company said its estimate is based on expected industry losses of $7.4 billion to $11.1 billion.

Morgan Stanley said losses from the Feb. 22 earthquake could be as much as three-times worse than a September quake in the same region.

Recently Allied World Assurance Company Holdings said it expects to record losses of between $30 million and $40 million from the February earthquake.

Swiss Re has come in with the highest loss estimate, at about $800 million. Hannover Re and Validus Holdings have weighed in with  estimated losses of $209 million and between $25 million and $50 million, respectively.