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.

The New York State legislature appears to be on the verge of passing legislation to address the state’s group self insured trust workers’ compensation system, which has amassed about $800 million in unfunded liabilities, sources tell NU Online News Service.

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.

While title insurers’ profitability improved in 2010 compared to 2009, Fitch Ratings says it will not change the industry outlook to stable until evidence points to sustainable profitability for the sector.

Moody’s Japan K.K. has revised its outlook on Japan’s three largest domestic property and casualty insurance groups due to the widespread damages expected from the March 11 earthquake and tsunami.

In the wake of a magnitude 9.0 earthquake that struck Japan on March 11, with insured-loss estimates reaching as high as $35 billion, analysts and rating agencies fell on either side of the debate about whether the event will cause a turn in the long-running soft-market cycle.

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.