Partner Re Estimates Australia Losses

February 16, 2011

PartnerRelogoBermuda reinsurer PartnerRe Ltd. today [Feb. 16] said it expects damage in Australia from catastrophic  floods and a tropical cyclone to result in net insurance claims of $80 million to $100 million for the first quarter of this year.

During January, there was widespread flooding in parts of Australia, including the states of Queensland and Victoria. In early February, Cyclone Yasi caused further flooding and property damage in Queensland.

Industry analysts are already predicting the disasters could be Australia’s costliest ever in terms of insured losses

The Pembroke, Bermuda-based reinsurer said losses from the floods, and damage caused by the cyclone, would impact reinsurance contracts it underwrote. The first-quarter losses followed losses experienced by many insurers and reinsurers in the last quarter of 2010 that were caused by flooding in Australia.

Last week, PartnerRe said its 2010 profits had been dented by claims from the floods.

The Insurance Council of Australia late last week increased its estimates for flood-related claims by its members to $2.68 billion.

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