Bulletin: Christchurch Earthquake Will Worsen Insurance Earnings, But Capital And Reinsurance Remain Rating Strengths Feb 11
- ID: 1820607
- February 2011
- Standard & Poors
MELBOURNE (Standard & Poor's) Feb. 23, 2011--Standard & Poor's Ratings Services said today that yesterday's Christchurch earthquake places further downward pressure on the earnings of the general insurers in New Zealand, but the capital strength and extensive reinsurance protection of major general insurers would limit negative rating pressure at this stage. The scale of the event in terms of loss of life and damage to property in a significant urbanized centre–Christchurch is New Zealand's second-largest city–is unprecedented for the region in recent times. While still very early to accurately assess, we would expect the insurance loss to far exceed that of the September 2010 Christchurch earthquake, which currently stands at around NZ$5 billion, and add to the general insurers' recent...
Companies mentioned in this report are:
- Insurance Australia Ltd.
- IAG New Zealand Ltd.
- Earthquake Commission
- Vero Insurance New Zealand Ltd.
- Insurance Australia Group Ltd.
- Suncorp Group Ltd.
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