Bermuda-based Omega Insurance Holdings Limited, which is also a leading LLoyd’s insurer, has issued a revised estimate of the losses it expects to incur from claims related to the earthquake, which struck New Zealand on Sept. 4.
Omega explained that “over recent weeks both primary cedants and reinsurers have been revising their estimates of the New Zealand loss.” The company said that, based on these updates, its “loss estimate for the New Zealand earthquake has risen to US$16.8 million, net of reinstatement premiums and before profit commission effects, and US$18.9 million after profit commission. In most cases this represents exhaustion of the limits for the event.”
Omega went on to explained that it had originally “released a loss estimate for the New Zealand earthquake of $6.2 million, a total cost to the Group of $7.0 million including the effect on managing agency profit commission, based on the limited public information available at that time;” i.e. shortly after the event.
It also noted that “there remains uncertainty around the range of possible outcomes, with estimates of current market losses varying widely. The majority of Omega’s exposure arises through the reinsurance of local New Zealand cedants, with the remainder coming from retrocession accounts.”
The bulletin added that, “any exposure to the ongoing Australian Floods would be predominantly from Omega’s property treaty reinsurance account; however, at this early stage there is little reliable loss data. The Company will continue to monitor the situation and make a further comment if appropriate.”
Source: Omega Insurance Holdings
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