April 2011/1

As reported losses from (re)insurers attributable to the 11 March Japan earthquake continue to escalate, sources suggest direct and facultative writers are exposed to a potential loss of around $1bn from the international property cover for the East Japan Railway Company (JR East).

The liability claims that will follow the Fukushima Daiichi nuclear disaster are likely to land on the Japanese government, despite reassurances from Prime Minister Naoto Kan that there is no intention of nationalising the Tokyo Electric Power Company (Tepco).

Total loss estimates from the Japanese earthquake pushed well past $6bn last week as international (re)insurers lined up to give investors greater clarity on their exposures.

XL China subsidiary opens; Irish take downgrade hit; Brown & Brown take First Horizon; Aviva's Espana prop-up...

Japanese carrier Zenkyoren is likely to receive the full $300mn coverage from its Muteki catastrophe bond for losses suffered in the Tohoku earthquake, according to Moody's.

All underwriters (and investors) know that the only way to make serious money in any market is to be a contrarian.

UK composite insurer Aviva is set to return to the London market after an 11-year absence by establishing a new unit that is aiming to generate £1.8bn in premium income within three years, The Insurance Insider understands