Platinum Estimates NZ & Aussie Loss
Platinum Underwriters Holdings, Ltd. announced its preliminary loss estimates for the 2011 Australian floods and Cyclone Yasi and the 2011 New Zealand earthquake, saying they currently expect the 2011 Australian floods and Cyclone Yasi and the 2011 New Zealand earthquake will have a net negative impact of approximately $25 million and $135 million, respectively.
A spokesperson said, “The Company currently believes the reserves it carries for natural catastrophe events that occurred in the year ended December 31, 2010, including the earthquakes in Chile and New Zealand, are adequate.”
“The Company provides reinsurance coverage for earthquake and tsunami risk in Japan and is currently assessing its exposures to the Tohoku earthquake that struck the northeastern coast of Japan less than two weeks ago. The Company believes providing an estimate of the net negative impact on the Company’s results from the Tohoku earthquake would be premature at this time given its magnitude and recent occurrence. However, the Company’s modeling of its property and marine portfolio indicates that the Company’s share of industry losses from the Tohoku earthquake will be between approximately 0.25% and 0.40% of total industry losses.”
Michael D. Price, President and Chief Executive Officer of Platinum, commented, “Despite the recent increased frequency of major natural catastrophes, we believe Platinum remains well capitalized and we continue participating selectively in the reinsurance marketplace. The recent disasters demonstrate the inherent volatility of business exposed to property catastrophes. Nevertheless, we believe that writing such business, when adequately priced, is an important element of our strategy for delivering attractive long term returns to shareholders.”
Mr. Price added, “We believe the Tohoku earthquake is an activation event under our contract with Topiary Capital Limited and that we now benefit from up to $200 million of collateralized retrocessional protection for certain catastrophe events that may occur prior to August 2011.”
Mr. Price further added, “Our sympathies are with those adversely affected by these natural catastrophe events.”
