Transatlantic Holdings (TRH) announced that it expects to incur total net catastrophe costs (net of reinstatement premiums and reinsurance) in the first quarter of 2011 of approximately $355 million, net of tax, based on its preliminary assessment of the impact of all of the catastrophe events that have occurred in the quarter.
TRH said the “total for the quarter includes catastrophe costs related to the Tohoku Earthquake, which occurred off the coast of Northeast Japan, and ensuing tsunami of approximately $240 million, net of tax, and contemplates an industry loss of between $25 billion and $30 billion. The quarterly total also includes TRH’s present estimate related to first quarter 2011 events in Australia and the February earthquake in Christchurch, New Zealand of approximately $115 million, net of tax.”
The bulletin explained that the “calculation of these estimates involves a significant amount of judgment and is heavily reliant on industry loss predictions, preliminary data from cedants, output from catastrophe modeling software and market share analysis. Due to the preliminary nature of information used to prepare these estimates, among other factors, the ultimate costs that TRH will incur related to these events may differ materially from these estimates.”
President and CEO Robert F. Orlich commented, “We wish to extend our deepest sympathies to all those who are suffering as a result of the tragic events of the first quarter in the Asia-Pacific region and acknowledge the heroic efforts of those assisting in the monumental task of recovering from these events. We also want to extend our thanks to our local staff for their steadfast courage and resolve at this difficult time. Our teams on the ground are supported by the considerable resources of Transatlantic’s worldwide organization as they continue to serve our clients in the region.
“While these are significant events, Transatlantic remains financially strong, with stockholders’ equity as of December 31, 2010 of $4.3 billion, and firmly dedicated to serving its diverse customer base worldwide.”
Source: Transatlantic Holdings
Topics Catastrophe Profit Loss
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