Catlin Group Limited, the international specialty property/casualty insurer and reinsurer, announces an initial estimate of the financial impact of the 11 March 2011 earthquake and tsunami which devastated areas of northeast Japan.
Catlin expresses its sympathy to the Japanese people following the tragedy. The Group has made a financial contribution to Save the Children to help the organisation provide aid to young people whose lives have been affected by the earthquake and tsunami.
Catlin currently estimates that its losses related to this Japanese earthquake and tsunami will amount to approximately US$200 million, net of reinsurance and reinstatements. This estimate is based on total insured losses of between US$20 billion and US$30 billion.
This estimate is subject to a considerable degree of uncertainty as the full scale of human and economic damage is not yet known. It will be many months until the total amount of insured damage arising from this catastrophe can be estimated with precision.
Catlin had previously estimated that its losses from other first-quarter catastrophes – the January flooding in Brisbane and other areas of Australia and the February earthquake in Christchurch, New Zealand – would amount to US$175 million, net of reinsurance and reinstatements. There has been no material change in the loss estimates arising from either of these events.
The Group believes that whilst the combined losses from the three first-quarter catastrophes will have a significant impact on 2011 earnings, the Group’s capital base remains intact.
Catlin has in place broadly a US$500m catastrophe aggregate deductible in respect of gross catastrophe claims. The Group has significant reinsurance protection in place above this deductible. A substantial portion of the losses from another major catastrophic event during 2011 would be recoverable from the reinsurance programme.