Ariel: $35-$50 Million in Q1 Catastrophes
Bermuda based Ariel Reinsurance Company, the reinsurance subsidiary of Ariel Holdings Ltd,. today [Mar.31] announced its initial estimate of losses incurred from catastrophe events in the first quarter of 2011, including the Christchurch earthquake, Cyclone Yasi, Australian flooding, Gryphon Alpha and the Tohoku Earthquake in Japan.
A spokesperson said, “The aggregate cost to Ariel Re of these events is estimated to be between thirty-five and fifty million dollars net of reinsurance and reinstatement premiums. As these events are very recent, estimates are subject to significant uncertainty and it will be some time before additional information will allow for a reliably accurate loss estimate. In the absence of additional catastrophic events, both Ariel Re and Ariel expect to report positive net income for the first quarter of 2011.”
“Ariel Re has adopted a highly selective approach to underwriting catastrophe exposures since formation in late 2005. As a consequence, losses incurred from last year’s Chile and New Zealand earthquakes combined were less than $24 million, or about 1.5% of 2010 beginning shareholders’ equity, and 2010 net income of $216 million further contributed to the Company’s strong capital position. Ariel Re looks forward to continuing to work with brokers and clients to create sustainable reinsurance relationships, offering meaningful capacity on both international and U.S. programs that offer appropriate risk/reward opportunities.”
