Allied World Assurance Company Holdings, AG announced today that it expects approximately $75 million in losses and loss expenses from the March 11, 2011 Tohoku earthquake and tsunami in Japan. This amount is pre-tax and net of reinsurance recoverables.
The March 11, 2011 Tohoku earthquake with a magnitude of 9.0 is one of the largest earthquakes ever recorded. The earthquake occurred off the eastern coast of Japan and triggered a massive tsunami resulting in significant loss of life and extensive property damage.
President and Chief Executive Officer Scott Carmilani commented, "We wish to extend our deepest sympathies to those impacted by the tragic events in Japan and throughout the Asia Pacific region. As a global provider of insurance and reinsurance products, Allied World expects to have losses from these events but our loss estimates are within our risk tolerances, and we retain a very strong capital base. We remain committed to supporting our global customer base."
Allied World's loss estimate for these events in Japan are derived from preliminary information obtained from clients and brokers, a review of the terms of in-force policies and contracts, a review of outward reinsurance agreements and from our catastrophe modeling analysis. This estimate is consistent with catastrophe vendors' industry loss estimates. Actual ultimate losses from these events may vary materially from the current estimates due to inherent uncertainties resulting from several factors, including the preliminary nature of loss data available, potential inaccuracies and inadequacies in the data that has been provided and the potential for catastrophe modeling inaccuracies.
About Allied World Assurance Company
Allied World Assurance Company Holdings, AG, through its subsidiaries, is a global provider of innovative property, casualty and specialty insurance and reinsurance solutions, offering superior client service through a global network of branches and affiliates. Our insurance and reinsurance subsidiaries are rated A (Excellent) by A.M. Best Company, and our Lloyd's Syndicate 2232 is rated A+ (Strong) by Standard & Poor's and Fitch. Please visit our website at www.awac.com for further information on Allied World.