Ariel Re Estimates Q1 2011 Cat Losses between $35-$50 Million

Bermuda-based Ariel Reinsurance Company, the reinsurance subsidiary of Ariel Holdings Ltd., announced that its initial estimate of losses incurred from catastrophe events in the first quarter of 2011 – the Christchurch earthquake, Cyclone Yasi, Australian flooding, Gryphon Alpha and the Tohoku Earthquake in Japan – are between $35 and $50 million, net of reinsurance and reinstatement premiums.”

The bulletin cautioned that, “as these events are very recent, estimates are subject to significant uncertainty and it will be some time before additional information will allow for a reliably accurate loss estimate. In the absence of additional catastrophic events, both Ariel Re and Ariel expect to report positive net income for the first quarter of 2011.”

Ariel Re also explained that it has “adopted a highly selective approach to underwriting catastrophe exposures since formation in late 2005. As a consequence, losses incurred from last year’s Chile and New Zealand earthquakes combined were less than $24 million, or about 1.5 percent of 2010 beginning shareholders’ equity, and 2010 net income of $216 million further contributed to the Company’s strong capital position.”

Source: Ariel Re

Topics Profit Loss