Aspen Insurance Holdings Announces Initial Loss Estimates for Australian Floods, Cyclone Yasi & New Zealand Earthquake & Comm...
March 15 2011 - 9:53AM
Business Wire
Aspen Insurance Holdings Limited (“Aspen” or the “Company”)
(NYSE:AHL) today announced an estimate of losses from the 2011
Australian Floods and Cyclone Yasi (the “2011 Australian
Catastrophe Events”), and the New Zealand Earthquake of February
21, 2011 (the “February 2011 New Zealand Earthquake”) and commented
on the Tohoku Earthquake.
The Company’s initial estimate of losses from the 2011
Australian Brisbane Floods which took place between January 10 and
17, 2011, is in the region of US$30 million post tax and net of
reinstatement premiums. The Company believes that its losses in
respect of Cyclone Yasi, the Victoria Floods, which took place
between January 13 and 17, 2011, and the other Queensland floods
are not material.
The Company’s initial estimate of losses from the February 2011
New Zealand Earthquake is in the region of US$60 million post tax
and net of reinstatement premiums and applicable reinsurance, in
respect of which the Company has a fully collateralized
retrocession cover of US$50 million excess of US$50 million. This
initial loss estimate for the February 2011 New Zealand Earthquake
is consistent with an industry loss of US$12 billion. The Company
has assumed a total loss to all domestic New Zealand placements for
this event which is similar to the Company’s approach adopted on
estimated losses from the September 2010 New Zealand
earthquake.
The Company’s post tax loss estimate for the September 2010 New
Zealand earthquake remains US$47 million, net of reinstatement
premiums. The Company did not have any retrocession in force for
the September 2010 New Zealand earthquake.
The Company’s estimates are based on its review of individual
treaties and policies expected to be impacted and client data
received to date and have taken into account current total insured
market loss estimates, both from published sources and the
Company’s internal analysis. In view of the uncertainties
associated with these initial estimates, actual losses may differ
materially from these preliminary estimates
The tragic loss of life and extent of devastation continues to
unfold following the earthquake and tsunami that struck the North
Eastern Coast of Japan on March 11, 2011 (“the Tohoku Earthquake”).
The Company has initiated its estimation process in connection with
expected claims relating to this event but believes it is too early
to issue a loss estimate at this time. However, the Company does
not have any known exposure to property damage, business
interruption or liability for any nuclear incidents arising from
the Tohoku Earthquake.
About Aspen Insurance Holdings Limited
The Company provides reinsurance and insurance coverage to
clients in various domestic and global markets through wholly-owned
subsidiaries and offices in Bermuda, France, Germany, Ireland,
Singapore, Switzerland, the United Kingdom and the United States.
For the twelve months ended December 31, 2010, The Company reported
gross written premiums of $2,076.8 million, net income of $312.7
million and total assets of $8.8 billion. Its operating
subsidiaries have been assigned a financial strength rating of “A”
(“Strong”) by Standard & Poor's, an “A” (“Excellent”) by A.M.
Best and an “A2” (“Good”) by Moody's Investors Service.
Application of the Safe Harbor of the Private Securities
Litigation Reform Act of 1995:
This press release contains written, and Aspen's officers may
make related oral, "forward-looking statements" within the meaning
of the U.S. federal securities laws regarding its initial estimate
of losses from the 2011 Australian Floods and Cyclone Yasi, the
February 2011 New Zealand Earthquake, the September 2010 New
Zealand Earthquake and the earthquake and tsunami in Japan. These
statements are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Forward- looking
statements include all statements that do not relate solely to
historical or current facts, and can be identified by the use of
words such as "expect," "intend," "plan," "believe," "project,"
"anticipate," "seek," "will," "estimate," "may," "continue," and
similar expressions of a future or forward-looking nature.
All forward-looking statements address matters that involve
risks and uncertainties. Accordingly, there are or will be
important factors that could cause actual results to differ
materially from those indicated in these statements. Aspen believes
these factors include, but are not limited to, in respect of the
losses from the 2011 Australian Catastrophe Events, the February
2011 and September 2010 New Zealand earthquakes and the Tohoku
Earthquake, developing information available from brokers, clients
and loss adjusters, the receipt of actual loss reports, forecasts
of losses relating to these events for the industry as a whole and
for individual companies, changes in the total industry losses or
the Company's share of such losses, the actual number of the
Company’s insureds incurring losses from these events, limitations
in current modeling techniques and their application, the impact of
any demand surge on claims, coverage issues, the impact of foreign
exchange fluctuations and the effectiveness of the Company’s loss
limitation methods. For a more detailed description of these
uncertainties and other factors which could cause results to differ
materially, please see the "Risk Factors" section in Aspen's Annual
Report on Form 10-K as filed with the U.S. Securities and Exchange
Commission on February 25, 2011. Aspen undertakes no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise. Readers
are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the dates on which they are
made.
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