QBE expects $125mn Japan loss
Australian (re)insurer QBE expects losses of around $125mn in its European operations from the 11 March earthquake and tsunami in Japan.
The losses would be borne by QBE's European reinsurance, marine and energy operations where its exposures were "relatively low", CEO Frank O'Halloran said.
The latest loss brings the firm's total 2011 catastrophe claims to the $550mn mark, or to about one third of its $1.65bn cat budget for the year.
QBE is the first insurer to estimate its exposure to the disaster, for which modelling firm Eqecat has predicted total economic losses will be more than $100bn.
The 9.1 magnitude quake was the largest recorded in Japanese history.
Total insured losses for the earthquake could reach $15bn-$35bn (1.2tn-2.8tn yen), fellow modeller AIR Worldwide estimates. This forecast doesn't include the effects of the devastating tsunami that followed, wiping out some coastal towns.
However, Oriel Securities analyst Tom Dorner speculated that a higher portion of the loss will remain with local Japanese insurers than for the recent Chilean and New Zealand earthquakes, where costs were largely passed onto international reinsurers.
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