Bloomberg News

Reinsurers to Pay Two-Thirds of Australia, N.Z. Claims, Aon Says

September 29, 2011

Sept. 30 (Bloomberg) -- Reinsurers are expected to reimburse Australian and New Zealand insurers for as much as two-thirds of damage claims from disasters in 2010 and 2011, according to Aon Benfield.

Insurers will recoup about A$16 billion ($15.7 billion) from reinsurers on combined losses of A$25.6 billion from the floods in Queensland state, Cyclone Yasi, a hailstorm in Perth and the New Zealand earthquakes, the world’s biggest reinsurance broker said in an e-mailed statement.

Executives from reinsurers including Swiss Re and Allianz Re say prices for catastrophe coverage should rise next year after disasters from New Zealand to Japan drove up claims and low interest rates hurt investment returns. QBE Insurance Group Ltd., Suncorp Group Ltd. and Insurance Australia Group Ltd. spent $3.4 billion buying reinsurance last year to slash catastrophe bills.

--Editor: Andreea Papuc

To contact the reporter on this story: Nichola Saminather in Sydney at nsaminather1@bloomberg.net

To contact the editor responsible for this story: Andreea Papuc at apapuc1@bloomberg.net


Best LBO Ever
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus