Company reports first quarter losses from New Zealand earthquake

Lancashire Holdings Limited has announced in the first quarter of 2011, the company's operating subsidiaries have pre-tax net losses estimated to be in the range of $45m to $55m for property losses arising from the earthquake on 22 February 2011 in Christchurch, New Zealand.

The company said that it was monitoring its potential underwriting exposures in Japan and the Pacific region to the earthquakes and tsunami centred off the north east coast of Japan that occurred on 11 March 2011.

The company believes that it is premature to estimate a meaningful indicative reserving range for these events or the resulting impact on first quarter results, reinstatement premiums or market pricing.

It said that a further announcement will be made once information becomes available to make a more informed estimate of the expected losses.

Lloyd’s issued the following statement on the recent earthquake in Japan. "Our thoughts are still with those affected by the major earthquake and tsunami events in Japan.

"Lloyd’s is committed to providing cover to the Japanese market and our first priority is handling claims swiftly and supporting the local insurers. It is far too early for us to comment on any potential business impact."

It added: "Lloyd's routinely stress tests individual syndicates and the market as a whole for large-scale natural catastrophes of this nature and we are confident the market can respond to any claims in the normal course of business."