Lloyd’s insurer cuts £7m from New Zealand and Australian loss estimate

Lloyd’s insurer Chaucer Holdings has reduced its best estimate for claims arising from the 2010 New Zealand earthquake and Australian floods.

The insurer had previously estimated the combined total loss from these events at £24 million. However, following further assessment, it has updated this to £17 million, downy by £7 million.

Chaucer is also providing an initial loss estimate, based on an assumed industry loss of NZ$12 billion, of approximately £19 million for the 22 February 2011 Christchurch, New Zealand earthquake and £8 million for the January 2011 Australian floods.

These loss estimates are net of reinstatement premiums and reinsurance.

Chaucer is currently assessing its exposure to the recent earthquake and tsunami in Japan on 11 March 2011, it said. The insurer will provide a further update in due course.