AXIS Estimates Japan Quake: $285 Million
AXIS Capital Holdings Limited yesterday [Apr.18] estimated that the total net financial impact of the Japan earthquake and tsunami is expected to be $285 million, net of tax, reinsurance recoveries and reinstatement premiums.
Losses related to the Japan earthquake and tsunami are expected to primarily impact the reinsurance segment of the Company. The Company has assumed a total loss to a significant local reinsurance program that provides coverage to a cooperative mutual with significant market share in the regions affected by the earthquake and tsunami. The net loss from the Japan earthquake to the Company’s insurance segment is not expected to exceed $25 million due to reinsurance coverage limiting net retentions in the segment.
AXIS Capital currently estimates that total insured losses, excluding losses assumed by the Japanese government, will be in the range of $30-$35 billion.
The Company’s loss estimate is subject to significant uncertainty as there is very limited actual loss data at this time.
