Alterra Gives Estimates Aus. Floods, Cyclone Yasi, NZ Quake Losses

March 18, 2011

Bermuda-based Alterra Capital Holdings Limited has announced initial loss estimates for three recent natural catastrophe events. Alterra said the estimates are “$5 to $8 million related to the Australian floods in January 2011; $6 to $10 million related to Cyclone Yasi on February 2, 2011; and $15 to $20 million related to the New Zealand earthquake on February 21, 2011.” The estimates are “pretax and net of reinsurance and reinstatement premiums.”

Alterra also said it is “carefully monitoring the rapidly developing claims situation resulting from the Japanese earthquake and tsunami on March 11, 2011. Given the limited information that is available and the uncertainty of potential claims and damages, it is not yet possible to issue a credible loss estimate related to these events; however, Alterra has no information at this time that indicates that its losses from these events will be outside of Alterra’s normal risk tolerances for natural catastrophe events in this geographic region.”

The loss estimates are based on “proprietary modeling analysis, industry assessments of exposure, preliminary claims information obtained from Alterra’s clients and brokers to date and a review of in-force contracts,” said the bulletin. The actual loss figures may therefore “vary materially from the estimates” due to a number of factors.

Alterra was formed in May 2010 with the completion of a merger agreement between Max Capital and Harbor Point Ltd.

Source: Alterra Capital Holdings Limited

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