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Tokio-led Mitsubishi and Nikon expected to be major loss

The Tokio Marine-led programmes of Mitsubishi and Nikon are expected to incur heavy losses running into hundreds of millions of dollars from the Thai floods, The Insurance Insider understands.

The pair are the latest names to circulate the market as expected major losses.

At the end of November The Insurance Insider reported that the MS&AD-led property programmes of Sanyo-Matsushita and Sony were expected to suffer total losses from the Thai floods, inflicting a $1.75bn gross loss on their insurers.

Sanyo-Matsushita, which includes the brand Panasonic, is being routinely talked of by senior market sources as a $950mn total loss.

Sony, meanwhile, is expected to have had its own $800mn programme wiped out by the flooding.

It is understood the latter is reinsured out to the international reinsurance market facultatively.

However, nothing is known about any facultative covers that may have been purchased for the Sanyo-Matsushita programme.

Tokio Marine is thought to have a share of the Sanyo-Matsushita loss.

These losses are just two of the most prominent examples among many heavy losses that (re)insurers are expecting to take after months of serious flooding in the south-east Asian country.

Honda's losses are also expected to take a big chunk out of the $1bn of property cover it purchases which, according to sources, is led by Tokio Marine.

Other major Japanese manufacturers likely to file significant claims include Toshiba, Hitachi, Canon, Sharp and Mazda.

The Japanese keiretsu system of informal links between businesses means that the traditional insurers of many of these manufacturing firms are already known.

These relationships may explain why MS&AD has reported the biggest net loss forecast of the Japanese big three at 130bn yen ($1.7bn).

Allied companies in the three keiretsu that MS&AD is part of include Sanyo-Matsushita, Sony, Toshiba, Toyota and Mazda.

NKSJ is informally tied to Canon, Hitachi, Nissan and Fujitsu.

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