NZ Quake to Cost Platinum $40 Million
Bermuda-based Platinum Underwriters Holdings, Ltd has increased its estimate of losses from the New Zealand earthquake to approximately $40 million.
The South Pacific island was struck by a 7.1 magnitude earthquake on September 4, 2010.
Platinum’s current loss estimate reflects the expected impact of foreign exchange rates as well as recent information indicating that a greater proportion of the insured losses from this event will be borne by the private residential insurance market.
The Company’s loss estimate from the New Zealand earthquake is based on information from clients and brokers, industry loss estimates, portfolio modeling and a review of individual contracts. The actual impact on the Company’s results arising from this event may differ materially from the current estimate. Forecasts of losses relating to earthquakes are subject to considerable uncertainty due to limited actual loss data.
Platinum Underwriters Holdings, Ltd. (Platinum Holdings) is a Bermudian holding company. Through its subsidiaries, Platinum Underwriters Bermuda, Ltd. and Platinum Underwriters Reinsurance, Inc., the Company provides property and marine, casualty and finite risk reinsurance coverages, through reinsurance intermediaries, to a varied clientele of commercial and personal lines insurers and select reinsurers on a worldwide basis. Its subsidiaries include Platinum Underwriters Bermuda, Ltd. based out of the Belvedere Building at 69 Pitts Bay Road.
