Bermuda Insurers Braced For Further Losses

by Mike Godfrey, Tax-News.com, Washington

26 April 2011

The Bermuda reinsurance market will pay out substantial proportions of the total claims liabilities for the recent succession of natural disasters, including over half of the claims for the New Zealand earthquake.

According to 2010 global underwriting figures published by the Association of Bermuda Insurers and Reinsurers (ABIR) on April 15, the group of 22 member companies has reported 51% of the total claims liability for the earthquake which hit the New Zealand city of Christchurch on February 22.

In addition, these firms also account for 38% of the liabilities for the Chilean earthquake of February, 2010, and for 14% of the reinsurance claims reported thus far in connection with the twin disasters of the Japanese earthquake and tsunami. It is expected that the net effect of Australian flooding, the New Zealand earthquake, and the Japanese events will result in the worst first quarter catastrophe losses felt by the Bermudian market.

This news comes as yet more Bermudan insurers count the costs of the Japanese disasters. Partner Re posted the largest expected losses so far on April 14, estimating a cost of BMD500m. Endurance projects losses of BMD125m, and Alterra believes it will face costs of BMD125m.

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