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Mitsui Sumitomo Says Has "Adequate Capacity” following Japan Quake; Estimates Insured Losses at $12.24B

Source: Post Online UK

Posted on 24 May 2011

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Andrew McKee, CEO of Mitsui Sumitomo at Lloyd's, said that although "it is still too early to assess the full economic impact of the Tohuku Pacific earthquake on the MS&AD Insurance Group, and specifically on Mitsui Sumitomo at Lloyd's", he can "confirm that the business remains strong, has adequate capacity to pay any claims arising and continues to maintain extremely strong financial reserves."

Based on best current estimates it appears that earthquake and tsunami claims for domestic (Japanese) insurers are likely to reach approximately one trillion yen (approximately ($12.24 billion). MS&AD anticipates exposure of around 65 billion yen (approximately $795.8 million).

Given the scale and financial strength of the group, this is a very manageable exposure.??Commenting on the recent rating changes following the tragedy and Mitsui Sumitomo's undiminished appetite to write business, Mr McKee continued: "The recent ‘revisions of outlook' of the major Japanese insurers by the rating agencies following an event of this magnitude are necessary and welcome. We are communicating closely with the agencies and hope that our financial rating will be unaffected.??"

Closer to home, Mitsui Sumitomo at Lloyd's has experienced very little exposure to the Japanese catastrophes and continues to operate normally. Our appetite and capacity to expand our business remains undiminished, we continue to seek to underwrite new risks and our commitment to this territory, our brokers and our clients is absolute."