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Validus Estimates Its Losses from New Zealand Quake in the Millions, Industry Losses Up to $7.5 Billion

Source: Bermuda News

Posted on 01 Mar 2011

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Based on current preliminary loss estimates from commercial catastrophe model vendors and its own internal analysis, Bermuda reinsurer Validus Holdings Ltd. currently anticipates that the total insured industry loss from the February 2011 New Zealand earthquake will be larger than the September 4, 2010 quake in the same area which measured 7.1 in magnitude. The company believes insured industry losses could range between $6 billion to $7.5 billion. Validus estimates its own loss from the February 2011 New Zealand earthquake to be in the range of $25 million to $50 million.

The earthquake struck on February 22nd, with a magnitude of 6.3 on the South Island of New Zealand near Christchurch causing significant loss of life and damage to property.

Validus also noted the prevalence of worldwide events which it currently expects to give rise to insured losses in the first quarter of 2011, including the January floods in Australia, Cyclone Yasi in Australia, civil unrest in Northern Africa and the Middle East, damage to an offshore energy platform along with the Christchurch quake.

The company, which operates from offices on Par-La-Ville Road, said it does not currently expect its aggregate losses arising from these events to have a material impact on its shareholders’ equity and after considering these events, Validus continues to expect to report positive net operating income for the three months period ending March 31, 2011.