Everest Re Group said that it expects to incur net losses, after reinstatement premiums and taxes, of nearly $320m for the earthquake and tsunami that occurred in the Tohoku region of Japan in March.
The reinsurer view of its estimated losses from the Japanese event assumes a $25bn industry loss and is based on a combination of modeled information, underwriter analysis, preliminary client discussions, and a profile of exposed limits within the affected region.
Everest Re said that the unprecedented nature and scale of the loss and its relatively recent occurrence introduces significant complexity and uncertainty to the loss estimation and settlement process.
It has further added that the ultimate losses could differ, perhaps materially, as further information becomes available.
Everest Re chairman and CEO Joseph Taranto said that the given the frequency and severity of recent events, the company expect market pricing to firm worldwide for property catastrophe capacity.
"With significant financial resources, despite the losses in the first quarter, we are well prepared to respond to our clients’ needs," Taranto said.
Everest Re Group, through its subsidiaries, is primarily engaged in the underwriting of reinsurance and insurance in the Bermuda,US and international markets.