Reinsurer treating flooding as at least two events
Bermuda-based reinsurer PartnerRe estimates the flooding that took place in Australia in December will result in a charge of between $25m and $35m to its fourth-quarter 2010 results.
However, the company added that large areas of Australia continue to experience flooding, which wil cause a separate event or events and wil affect its first quarter 2011 results. PartnerRe did not give an estimate for these losses. "The company is currently assessing its exposure to the January 2011 event or events and will provide an estimate of the total impact of the flooding in Australia when this assessment is completed," a statement from ParterRe read.
In addition to the December Australia fiood flosses, PartnerRe expects to take a $45m hit to its fourth-quarter results because of the large number of losses that occured in Australia and New Zealand during 2010. The charge relates to an aggregate cover the company wrote.
PartnerRe will announce its fourth quarter and full-year 2010 results on 7 February.