Jefferies Puts Out Initial Estimate Of $10 Billion Hit To Insurers

japan tsunami

Photo: ap

While it’s still early and there’s no way to put a price on what the Japanese disaster will cost in the end, Jefferies analyst James Shuck has a headline number for the costs to the global insurance industry.From Jefferies’ James Shuck:

t this stage insured losses from the Japanese earthquake appear limited. We are working on the assumption of a $10bn industry loss. The impact on (re)insurer balance sheets is likely to be around 5%. We expect some rate momentum in the upcoming Japanese/ CAT renewals, but not enough for the total industry cycle to turn. Tsunami and aftershocks remain real risks, and this will drag on sector performance.

Don’t miss: Dramatic photos and videos of the earthquake and tsunami >

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