Lancashire: Egypt, Aussie, NZ & Japan Estimates
Bermuda based re/insurer Lancashire Holdings Limited announced an estimated loss of $45 to $55 million for the New Zealand earthquake, the recent Australian weather related events, and losses arising from the recent political unrest in Egypt. The company said they “believe that it is premature to estimate” what costs they may bear from the devastating 9.0 magnitude earthquake in Japan on March 11.
Their full statement follows below:
Lancashire Holdings Limited announces that to date in the first quarter of 2011 the Company’s operating subsidiaries have pre-tax net losses estimated to be in the range of US$45 million to US$55 million (net of reinstatement premiums and reinsurance) for prospective property losses arising from the 22 February 2011 Christchurch, New Zealand earthquake, the recent Australian weather related events (the New Zealand and Australian events combined account for estimated losses in the range of US$15 million to US$25 million), an energy loss in the UK sector of the North Sea, and losses in the group’s terrorism portfolio arising from the recent political unrest in Egypt.
Actual losses may differ from the estimated range.
The Company is monitoring its potential underwriting exposures in Japan and the Pacific region to the earthquakes and tsunami centred off the north east coast of Japan, which took place on 11 March 2011, and which have resulted in the tragic loss of life and significant property damage. The Company believes that it is premature to estimate a meaningful indicative reserving range for these events or the resulting impact on first quarter results, reinstatement premiums or market pricing. A further announcement will be made once information becomes available to make a more informed estimate of the expected losses
