Munich Re Japan losses "relatively modest"

Analysts at Jefferies have reported Munich Re’s Japan losses will be “relatively modest”.

In a report, analysts have lowered the German reinsurers 2011 earnings estimate by 63% following a series of very heavy natural catastrophe losses.

“This includes a tentative €1bn for the Japanese earthquake/ tsunami, equivalent to 4% of tangible NAV after tax,” said analyst James Schuck.

Schuck also estimates a total industry insured loss estimate of $32bn since third quarter of 2010, but said it is not enough to turn the market.

“It is too early to call a hard reinsurance market but we are closer than we were and certain lines will firm,” Schuck added.

Jefferies upgraded Munich Re stock from hold to buy, after recent share price weakness following the Japan earthquake.