NU Online News Service, March 15, 2:05 p.m. EST
Two insurance and reinsurance companies have provided loss estimates for the February 2011 New Zealand earthquake, with both companies basing their individual losses on expected industry losses upward of $12 billion.
Flagstone Reinsurance Holdings, based in Luxembourg, said it expects its losses from the quake to be between $60 million and $90 million, net of reinstatement premiums and retrocession. The company said it expects industry losses of between $8 billion and $12 billion.
David Brown, Flagstone CEO, said, "We do not expect any significant increase in our loss from the New Zealand quake due to our reinsurance protection even if the industry loss continues to increase and exceeds the high end of our industry loss estimate."
Hamilton, Bermuda-based Montpelier Re Holdings said it expects its pretax net losses from the New Zealand quake to be $75 million, based on projected industry losses of $12 billion.
Recently, Bermuda-based Catlin Group said it expects losses from New Zealand to be 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.
PartnerRe said it expects losses of between $180 million and $240 million.
Allied World Assurance Company Holdings said it expects to record losses of between $30 million and $40 million.
Swiss Re has come in with the highest loss estimate, at about $800 million. Hannover Re weighed in with estimated losses of $209 million, and Validus Holdings expects between $25 million and $50 million in losses.
Montpelier also said it expects $15 million in losses from January flooding in Australia and Cyclone Yasi.
Flagstone previously said it expects between $60 million and $80 million in losses from the January Australia events.
Both Montpelier and Flagstone mentioned the recent 9.0 magnitude earthquake in Japan in their statements, but both said it is too early to give loss estimates.
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