Earthquake Costs Stay in Japan
European and U.S. reinsurers can bypass costs strongest earthquake in Japan in a century as the government of the country, carriers and uninsured owners provide most of the losses.
The 8.9 magnitude earthquake off the coast of Sendai, a city of 1 million in the northeast and caused a tsunami that killed hundreds. Munich Re and Swiss Reinsurance Co. fell in European trading yesterday, while some reinsurance stocks in the U.S. were little changed. Reinsurers, who provide financial support to insurance companies, already paid claims on a Chilean earthquake of last year and face losses tied to February 1 temblor in New Zealand. Ii is greater shares of the losses are likely to be retained by the domestic Japanese insurers and reinsurers than was the case with the recent earthquakes in Chile and New Zealand.
Munich Re shares fell 4.3 percent to 111.75 euros ($ 155) in Frankfurt electronic commerce. 1.9 Swiss Re Swiss francs, or 3.5 percent, falling to 51.7 francs in Zurich trading. XL Group Plc (XL) slipped 1 cent to $ 22.22 at 4:15 pm in New York Stock Exchange composite trading. Warren Buffett’s Berkshire Hathaway Inc. Class A shares rose 0.2 percent to $ 128,000.