Catlin reveals losses for New Zealand quake

Marion Dakers
PROPERTY and casualty insurer Catlin published its losses linked to the New Zealand earthquake yesterday, which were $10m (£6.5m) more than previously thought.

The Lloyd’s of London insurer said the quake in September leaves it exposed to around $45m of claims, net of reinsurance – $10m more than the group’s earlier figures.

The firm said it has reviewed all its insurance contracts and collected data from brokers and clients to arrive at the sum.

The vast majority of the loss is due to property reinsurance contracts written by underwriting hubs in London and Bermuda, Catlin said.

Catlin currently puts the total insured losses resulting from the earthquake at between $5.5bn and $6bn.

The magnitude seven earthquake on New Zealand’s South Island demolished shops and homes when it struck in the early hours of 4 September.

The quake brought down power lines and bridges, and wrecked roads and building facades but did not result in any deaths.

In its November interim management statement, Catlin said claims from the quake were “not material”.

Earlier this year the firm’s profits were dented by $180m losses arising from the Chilean
earthquake and the Deepwater Horizon explosion.

The Lloyd’s market saw its profit cut in half to £628m in the first half of the year thanks
to the spate of disasters. The group’s total claims ratio stood at 98.7 per cent of premiums for the period, up from 91.6 per cent a year ago.

London-listed shares in Catlin closed down 1.25 per cent at 369.9p yesterday, giving the firm a market cap of £1.34bn.