Flagstone Ups Quake Estimate to $75 Million
Yesterday (Dec 30) Bermuda based Flagstone Reinsurance Holdings has updated its estimate of claims relating to its exposure to the earthquake in New Zealand from $52.5 million to $75.5 million net of reinstatement premiums and retrocession.
Flagstone’s loss estimate is based on its proprietary modeling analysis, the assessment of individual treaties and client data, third-party vendor models, and an updated estimated industry loss of $4.5 to $6 billion USD. The revision was due primarily to significant recently reported adjustments by cedants and conservative reserving assumptions by Flagstone taking into consideration the significant extent of potential property damage.
