Amlin Plc, a UK and Lloyd’s insurance company, gave a presentation to analysts in order to provide its most recent estimates regarding its catastrophe losses as a result of major events this year.
At that meeting, they announced that their estimations had reached approximately $50 million in their net claims resulting from the two serious American tornadoes that occurred in April and May of this year. They also stated that their estimations regarding the earthquake claims from the events in Japan and New Zealand “remain subject to uncertainty.” They added that the “net reserve for these events remains materially unchanged.”
Amlin restated its situation in saying that they will be able to somewhat recoup any worsening in the loss predictions through their reinsurance program. Furthermore, the construction of the Amlin reinsurance program for London permits notably higher reinsurance protection to be available in case of additional catastrophic events that may occur later on in 2011. Throughout the 2011 second quarter, Amlin bought an extra $40 million in coverage in order to improve the protection they have through reinsurance.
Amlin explained – in a statement that could be indicative of a positive turnaround in the reinsurance industry – that the rates underwritten by Amlin for American catastrophe reinsurance are believed to have risen by 7 percent for the renewals in June and July. During those same months this year, renewal rates for International catastrophe reinsurance in Amlin’s portfolio are believed to have risen by 50 percent.