Catlin Estimates Japanese Earthquake/Tsunami Losses at $200 Million

The Bermuda-based Catlin Group Limited announced that its initial estimate of the financial impact of the March 11 earthquake and tsunami that devastated areas of northeast Japan, are expected to be around $200 million, based on total insured losses of between $20 and $30 billion.

Catlin also expressed “its sympathy to the Japanese people following the tragedy. The Group has made a financial contribution to Save the Children to help the organization provide aid to young people whose lives have been affected by the earthquake and tsunami.”

The loss estimate is net of reinsurance and reinstatements, and is “subject to a considerable degree of uncertainty as the full scale of human and economic damage is not yet known,” said the bulletin. “It will be many months until the total amount of insured damage arising from this catastrophe can be estimated with precision.”

Catlin also noted that it has previously estimated that its “losses from other first-quarter catastrophes – the January flooding in Brisbane and other areas of Australia and the February earthquake in Christchurch, New Zealand – would amount to US$175 million, net of reinsurance and reinstatements. Catlin said “there has been no material change in the loss estimates arising from either of these events.”

The bulletin added that Catlin believes that the combined losses from the three first-quarter catastrophes will have a significant impact on 2011 earnings; however, “the Group’s capital base remains intact. Catlin has in place broadly a US$500m catastrophe aggregate deductible in respect of gross catastrophe claims. The Group has significant reinsurance protection in place above this deductible. A substantial portion of the losses from another major catastrophic event during 2011 would be recoverable from the reinsurance program.”

Source: Catlin Group

Topics Catastrophe Natural Disasters Profit Loss Reinsurance