Everest: $100/125M In Flood Losses
Bermuda-based Everest Re Group, Ltd. said it expects to incur net losses of between $100 million and $125 million, after reinstatement premiums and taxes, for claims arising from floods in Thailand.
This range of estimates is predicated on an industry loss estimate of between $10 billion and $15 billion.
A statement issued said, “The Company’s view of its estimate of losses from this event remains preliminary and is subject to considerable uncertainty. Significant rainfall during monsoon season coupled with the aftermath of three typhoons resulted in widespread flooding across many provinces in Thailand.
“The event spanned several months between the periods of July and December 2011 and has had a significant impact on the Thai economy. While water levels have begun to recede, the nature of this loss and the complexities surrounding the claim adjusting and settlement process lead to uncertainty when estimating the ultimate loss potential from this event.
“The Company expects it will be several months before relative clarity emerges with respect to its ceding companies’ underlying losses.
Everest also announced an expected increase of $26 million to its net after-tax loss estimate for the earthquake that struck Japan in March. The revision includes higher expected losses from one of the largest cedants in the region, which now exhausts this cover.
“Beyond the financial impact, the events of this year have taken a significant toll on human lives,” stated Joseph V. Taranto, Chairman and Chief Executive Officer.
“As an industry, we have borne the insurance risk, which is critical to rebuilding these economies. For 2011, Everest will have incurred significant catastrophe losses but the Company’s balance sheet remains strong and well positioned to capitalize on the opportunities for 2012.”
