Posted on 16 May 2011
Lloyd’s, the world’s specialist insurance market, announced on Friday its estimated net claims before tax at $3.8 billion from the earthquakes this year in Japan and New Zealand and the January 2011 floods in Australia.
The current net estimates are:
• US$ 1.95bn - Japan earthquake and tsunami
• US$ 1.2bn - New Zealand earthquake
• US$ 650m - Australia flooding
As additional information emerges, Lloyd’s actual ultimate net claims from these events may vary from this preliminary estimate. The claims are consistent with industry losses of US$ 30bn for Japan (excluding life assurance and the public sector component of the Japan Earthquake Reinsurance),
US$ 9bn in respect of the New Zealand Earthquake and US$ 5bn for the Australia floods. ??There will not be a material impact on Lloyd’s capital and there is not expected to be any Central Fund exposure from these events, either individually or collectively.
Lloyd’s Chief Executive Richard Ward said: “The beginning of 2011 has seen a series of tragic events that have had a major impact on communities in Australia, New Zealand and Japan. As ever, our priority remains to assess and settle valid claims as swiftly as we can to help these communities get back on their feet. ??The Lloyd’s market is as well capitalised as it has ever been and, while claims from all three events could still evolve over time, the market’s total exposure is well within the worst case scenarios we model and prepare for."
Dr Ward added: "We expect to see a firming of rates as a result of this first quarter and the recent tornadoes in the United States."
Lloyd’s preliminary estimates draw on market share analysis, the application of modelling techniques, a review of contracts in place and estimates from each syndicate.