Disasters send Lancashire to $117m losses

REINSURER Lancashire Holdings has raised its estimated exposure to last year’s Japanese earthquake by $42.2m (£26.8m) to a net loss estimate of $117.3m.

Lancashire said the increase “is mostly related to the company’s exposure to one significant cedant”, suggesting the firm may be responsible for a substantial claim from a single insurer.

The firm has now reserved the full maximum payment to this client but emphasises that the total amount is liable to change.

Lancashire also said that its estimated loss in the fourth quarter to recent floods in Thailand, after reinsurance and reinstatement premiums, was $24m to $28m (£15.2m to £17.8m).

But the firm revealed it has no direct exposure to the Thai losses from Japanese reinsurance treaty products.

Shares in the company, based in Bermuda and London, closed down 2.41 per cent at 688p.

Reinsurers have had a particularly bad year following disasters in Asia. The Thai floods have been particularly problematic, as it has proved difficult to quantify the number of insurance claims and their financial implications.