HAMILTON, Bermuda--(BUSINESS WIRE)--Aspen Insurance Holdings Limited (“Aspen” or the “Company”) (NYSE:AHL) today announced an estimate of losses from the 2011 Australian Floods and Cyclone Yasi (the “2011 Australian Catastrophe Events”), and the New Zealand Earthquake of February 21, 2011 (the “February 2011 New Zealand Earthquake”) and commented on the Tohoku Earthquake.
The Company’s initial estimate of losses from the 2011 Australian Brisbane Floods which took place between January 10 and 17, 2011, is in the region of US$30 million post tax and net of reinstatement premiums. The Company believes that its losses in respect of Cyclone Yasi, the Victoria Floods, which took place between January 13 and 17, 2011, and the other Queensland floods are not material.
The Company’s initial estimate of losses from the February 2011 New Zealand Earthquake is in the region of US$60 million post tax and net of reinstatement premiums and applicable reinsurance, in respect of which the Company has a fully collateralized retrocession cover of US$50 million excess of US$50 million. This initial loss estimate for the February 2011 New Zealand Earthquake is consistent with an industry loss of US$12 billion. The Company has assumed a total loss to all domestic New Zealand placements for this event which is similar to the Company’s approach adopted on estimated losses from the September 2010 New Zealand earthquake.
The Company’s post tax loss estimate for the September 2010 New Zealand earthquake remains US$47 million, net of reinstatement premiums. The Company did not have any retrocession in force for the September 2010 New Zealand earthquake.
The Company’s estimates are based on its review of individual treaties and policies expected to be impacted and client data received to date and have taken into account current total insured market loss estimates, both from published sources and the Company’s internal analysis. In view of the uncertainties associated with these initial estimates, actual losses may differ materially from these preliminary estimates
The tragic loss of life and extent of devastation continues to unfold following the earthquake and tsunami that struck the North Eastern Coast of Japan on March 11, 2011 (“the Tohoku Earthquake”). The Company has initiated its estimation process in connection with expected claims relating to this event but believes it is too early to issue a loss estimate at this time. However, the Company does not have any known exposure to property damage, business interruption or liability for any nuclear incidents arising from the Tohoku Earthquake.
About Aspen Insurance Holdings Limited
The Company provides reinsurance and insurance coverage to clients in various domestic and global markets through wholly-owned subsidiaries and offices in Bermuda, France, Germany, Ireland, Singapore, Switzerland, the United Kingdom and the United States. For the twelve months ended December 31, 2010, The Company reported gross written premiums of $2,076.8 million, net income of $312.7 million and total assets of $8.8 billion. Its operating subsidiaries have been assigned a financial strength rating of “A” (“Strong”) by Standard & Poor's, an “A” (“Excellent”) by A.M. Best and an “A2” (“Good”) by Moody's Investors Service.
Application of the Safe Harbor of the Private Securities Litigation Reform Act of 1995:
This press release contains written, and Aspen's officers may make related oral, "forward-looking statements" within the meaning of the U.S. federal securities laws regarding its initial estimate of losses from the 2011 Australian Floods and Cyclone Yasi, the February 2011 New Zealand Earthquake, the September 2010 New Zealand Earthquake and the earthquake and tsunami in Japan. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward- looking statements include all statements that do not relate solely to historical or current facts, and can be identified by the use of words such as "expect," "intend," "plan," "believe," "project," "anticipate," "seek," "will," "estimate," "may," "continue," and similar expressions of a future or forward-looking nature.
All forward-looking statements address matters that involve risks and uncertainties. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in these statements. Aspen believes these factors include, but are not limited to, in respect of the losses from the 2011 Australian Catastrophe Events, the February 2011 and September 2010 New Zealand earthquakes and the Tohoku Earthquake, developing information available from brokers, clients and loss adjusters, the receipt of actual loss reports, forecasts of losses relating to these events for the industry as a whole and for individual companies, changes in the total industry losses or the Company's share of such losses, the actual number of the Company’s insureds incurring losses from these events, limitations in current modeling techniques and their application, the impact of any demand surge on claims, coverage issues, the impact of foreign exchange fluctuations and the effectiveness of the Company’s loss limitation methods. For a more detailed description of these uncertainties and other factors which could cause results to differ materially, please see the "Risk Factors" section in Aspen's Annual Report on Form 10-K as filed with the U.S. Securities and Exchange Commission on February 25, 2011. Aspen undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made.