Japan earthquake, Australia floods, New Zealand earthquake cost Lloyd’s
Specialist insurer 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 are:
- US$ 1.95 billion – Japan earthquake and tsunami
- US$ 1.2 billion – New Zealand earthquake
- US$ 650 million – Australia flooding
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.
Lloyd’s said there will not be a material impact on its capital and there is not expected to be any Central Fund exposure from these events, either individually or collectively.
In a statement, Lloyd’s Chief Executive Richard Ward said, “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.”
He said the Lloyd’s market is “as well-capitalized as it has ever been” and the exposures are within the worst case scenarios the insurer models.
‘We expect to see a firming of rates as a result of this first quarter and the recent tornadoes in the United States,” Dr. Ward added.
