Specialist international insurer, Amlin, made initial estimates of the impact of the 2011 New Zealand earthquake, the Japanese earthquake which occurred on 11 March and the 2011 Queensland floods.
The 2011 New Zealand earthquake was a major catastrophe with market loss estimates of up to US$12 billion. As previously reported Amlin’s most significant 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. However, Amlin currently estimates net claims of around £110 million from the second earthquake.
Inevitably, so soon after the devastating earthquake and tsunami in Japan, 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 based on insured market losses of between US$12 billion and US$25 billion respectively.
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 programmes 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.
Charles Philipps, Chief Executive, 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, commented: “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 programmes provide increased levels of reinsurance protection for any further catastrophe events during 2011.”
Source : Amlin Press Release