Flagstone Reinsurance Holdings announced that its preliminary estimate from loss events that have occurred in Australia in the first quarter of 2011 is expected to be between $60 to $80 million, net of reinstatement premiums and retrocession.
“These events include, large-scale flooding in Queensland and Victoria in January, 2011, and Tropical Cyclone Yasi, a powerful Category 4 storm, which caused serious damage in Northern Queensland on February 3, 2011,” said the bulletin.
Flagstone also noted that the 6.3 magnitude earthquake, which struck Christchurch, New Zealand, caused widespread damage and business interruption, and is “expected to cause sizeable losses to the insurance industry.”
The Company noted that it has “commenced the estimation process for expected claims relating to its exposures from these events but believes it’s too early to issue an estimate of claims given the significant unknowns and early stages of the claims reporting process. The Company is protected by multiple layers of reinsurance which could be triggered should this loss prove to be significant.
“Flagstone’s loss estimates are based on its proprietary modeling analysis, the assessment of individual treaties and client data, and third-party vendor models. These estimates may be further refined as additional information is received from cedants and there exists the risk for further revisions.
Source: Flagstone Reinsurance Holdings
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