Endurance Estimates $15 Million Aus. Flood Loss; $45 Million NZ Quake

Bermuda-based Endurance Specialty Holdings Ltd. announced that its “initial loss estimate related to the floods which occurred in Queensland, Australia in January of 2011 is $15 million.” The specialty insurer’s initial loss estimate “related to the earthquake which occurred in the vicinity of Christchurch, New Zealand on February 21, 2011 is $45 million.”

Endurance also noted that it “believes its losses related to Cyclone Yasi are not material.” The loss estimates are pre-tax and net of reinsurance and reinstatement premiums.

Endurance explained that the loss estimates are “largely derived from a combination of its proprietary catastrophe modeling, standard industry models, a review of in-force contracts and preliminary indications from clients and brokers. To date, reported claims as a result of the Australian floods, Cyclone Yasi and New Zealand earthquake have been limited; accordingly, actual losses may ultimately differ materially from our initial estimated losses.”

The company also noted that it has “commenced the process of estimating its expected claims from the earthquake and tsunami that occurred in northeastern Japan on March 11, 2011. However, given the limited information received from its clients and brokers to date and the significant uncertainties regarding the extent and nature of the damages resulting from the earthquake and tsunami, Endurance believes it is premature at this time to estimate its losses from this event.”

Source: Endurance Specialty Holdings