Reinsurance

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.

This year’s massive Florida property insurance reform bill has made its way through the Senate Budget Committee, but changes to the bill irk industry representatives.

While there is sizable demand from insureds for coverage against the increasing tide of wage-and-hour claims made under the Fair Labor Standards Act, carriers remain largely reluctant to write policies—fearing a good chance of losing their shirts if they do.

As a pair of global reinsurers issued loss estimates in the billions for the March 11 Japan earthquake and tsunami, a Moody’s report indicates that commercial property and casualty insurers could take the biggest hit both in losses and credit worthiness from the event.

AXIS Capital Holdings Limited says it expects to incur between $275 million and $315 million in losses, pre-tax and net of reinstatement premiums, from the February New Zealand earthquake and from first-quarter loss events in Australia.