Specialist insurer Amlin plc has released initial estimates of the impact of the 2011 New Zealand earthquake, the Japanese earthquake and the 2011 Queensland floods.
The bulletin described the 2011 New Zealand earthquake as a “major catastrophe with market loss estimates of up to US$12 billion.” Amlin confirmed its earlier statement that most of its “reinsurance exposures are to residential properties. Little detailed information is available to date to allow a full analysis of reserve estimates to be made, particularly with respect to overlapping damage from the previous Christchurch earthquake.” Amlin’s estimate for the second quake is around £110 million [$177 million].
Concerning the earthquake and tsunami in Japan, Amlin pointed out that “any assessment of potential losses is subject to considerable uncertainty. However, based on a review of catastrophe reinsurance exposures and known exposures for property/marine insurance accounts, Amlin estimates that its net claims are likely to be between £80 million and £150 million [$130 and $242 million], based on insured market losses of between $12 billion and $25 billion respectively.”
Amlin added that the “scale of the losses means that any deterioration of these New Zealand and Japanese reinsurance loss estimates will be partly recoverable from our reinsurance. The structures of the reinsurance programs for London and Bermuda also mean that increased reinsurance protection will be available for future events in 2011.”
Net claims from the 2011 Queensland floods, which affected Brisbane and surrounding territories, are estimated at £15 million [$24 million].
Chief Executive Charles Philipps commented: “We are working closely with brokers to provide Amlin clients with all possible support following the tragic loss of life and property as a result of these events. Our ability to respond quickly and proactively to claims from catastrophe events is a key aspect of our service to clients.”
Simon Beale, Underwriting Director, Amlin London, added: “Amlin will continue to benefit from the diversity of its account in 2011. Early market signs suggest that previously reported softening in certain areas will be arrested and loss affected areas will see strong rate increases. As previously disclosed, Amlin’s reinsurance programs provide increased levels of reinsurance protection for any further catastrophe events during 2011.”
Source: Amlin plc
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