Swiss Re Insurance-Linked Fund Management

PCS - Emerging Risks, New Opportunities

Bermuda reinsurers earnings could be at risk due to Australia floods


We wrote last week that the insured loss estimates for the recent Queensland, Australia floods, combined with the flooding in December in Australia were now being touted as around $6 billion. Now, Business Insurance reports that a Barclays Capital analyst has suggested they could top $6 billion (particularly likely now the flooding has moved south) and that reinsurers in Bermuda were at risk of having earnings per share estimates cut.

The flooding was initially thought to have little impact on the reinsurance industry and the impact would be felt with domestic Australian general insurers. That’s proving to be wishful thinking as the claims keep coming and the extent of the property insurance and business interruption claims are exposed. Actual reconstruction costs for rebuilding the areas damaged by the floods are said to be closer to $20 billion so the impact on the reinsurance industry could have been a lot worse.

Artemis Live - ILS and reinsurance video interviews and podcastView all of our Artemis Live video interviews and subscribe to our podcast.

All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance video content and video interviews can be accessed online.

Our Artemis Live podcast can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.

Print Friendly, PDF & Email

Artemis Newsletters and Email Alerts

Receive a regular weekly email newsletter update containing all the top news stories, deals and event information

  • This field is for validation purposes and should be left unchanged.

Receive alert notifications by email for every article from Artemis as it gets published.