After careful calculation Lloyd’s has announced its estimated net claims before tax from the earthquakes this year in Japan and New Zealand and the January 2011 floods in Australia. The current net estimates were given as follows:
US$ 1.95 billion – Japan earthquake and tsunami
US$ 1.2 billion – New Zealand earthquake
US$ 650 million – Australia flooding
The bulletin cautioned that, “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$ 30 billion for Japan (excluding life assurance and the public sector component of the Japan Earthquake Reinsurance), US$ 9 billion in respect of the New Zealand Earthquake and US$ 5 billion for the Australia floods.”
Although the loss estimates are significant, Lloyd’s said “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.”
Chief Executive Richard Ward commented: “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 capitalized 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.”
He added that Lloyd’s expects a “firming of rates as a result of this first quarter and the recent tornadoes in the United States.
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The bulletin explained that the estimates were calculated from “market share analysis, the application of modeling techniques,” and a review of the “contracts in place and estimates from each syndicate.”
Source: Lloyd’s of London
Topics Catastrophe USA Profit Loss Claims Excess Surplus Lloyd's Australia Japan
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