PartnerRe Japan Quake Estimate: $500 Million
PartnerRe Ltd. today [Apr.13] provided an initial estimate of the losses related to the Tohoku earthquake and resulting tsunami in Japan of approximately $500 million.
The net loss for these events will primarily impact the Company’s Catastrophe sub-segment, with smaller amounts included in the Company’s other Non-Life sub-segments and its Corporate and Other segment.
Loss estimates are pre-tax, net of retrocession and reinstatement premiums, and relate to all of the Company’s Non-Life exposures, as well as insurance-linked securities, that are expected to be impacted by these events.
On March 11, 2011, a magnitude 9.0 earthquake struck off the coast of Honshu, Japan, causing widespread damage to property and infrastructure. The earthquake also triggered a large tsunami which impacted a substantial portion of the nearby coastal region. These events resulted in significant damage to both residential and commercial risks. The Company estimates that total insured non-life industry losses from these events are likely to be in the range of $25-$30 billion.
PartnerRe’s net loss estimate is based primarily on modeled losses for the Company’s portfolio, as limited information has been received from cedants to date, and there remains a high degree of uncertainty related to this estimate and actual net losses may differ materially.
