new zealand

New Zealand’s Natural Hazards Commission Toka Tū Ake (NHC), formerly known as New Zealand’s Earthquake Commission (EQC) Toka Tū Ake, has added more limit to its reinsurance tower, lifting the top by $1.15 billion for 2025, in a renewal securing $10.3 billion of cover for disaster losses in the country.

New Zealand’s EQC Toka Tū Ake, previously known as the New Zealand Earthquake Commission, has added more limit to its reinsurance tower, lifting the top by $1 billion for 2024, in a renewal securing $9.2 billion of cover for disaster losses in the country.

Because the first catastrophe bond sponsored by the Toka Tū Ake EQC, or New Zealand Earthquake Commission, was structured to meet its Boards ambitions of being “complementary” to the rest of its reinsurance tower, it sets the scene for future issuances, EQC’s CEO and Head of Risk Financing told Artemis in an exclusive interview.

Toka Tū Ake EQC, or the New Zealand Earthquake Commission, has lifted the top of its reinsurance tower to a new high of $8.2 billion at this years renewal, with the addition of its first Totara Re 2023-1 catastrophe bond helping it diversify its sources of protection.

The New Zealand Earthquake Commission, or Toka Tū Ake EQC, has now priced its debut catastrophe bond issuance, with the Totara Re Pte. Ltd. (Series 2023-1) deal set to provide the insurer a NZ $225 million source of collateralized and multi-year reinsurance protection.

The New Zealand Earthquake Commission, or Toka Tū Ake EQC, remains on-track to secure its debut slice of catastrophe bond backed reinsurance protection from the capital markets,  with the Totara Re Pte. Ltd. (Series 2023-1) issuance looking set to price at the upper-end of initial guidance, we understand.

New Zealand’s Toka Tū Ake EQC, also known as the Earthquake Commission, has entered the catastrophe bond market for the first time, seeking NZ $250 million (around US $156m) of multi-peril reinsurance from the capital markets with a Totara Re Pte. Ltd. (Series 2023-1) issuance.

Further demonstrating the long-tail that earthquake claims can have, the insurance and reinsurance market loss estimate for the 2010 and 2011 Canterbury, New Zealand earthquakes continues to rise, with the latest figure now $22.3 billion, according to the Insurance Council.

There is evidence that claims from the New Zealand earthquakes continue to impact insurers and be passed on to reinsurance capital as a result, with IAG and Suncorp both reporting more claims coming in from Canterbury and Kaikoura quake events.

Insurance claims filed in both personal and commercial business lines that will fall to the private market for payment after the 14th November 2016 Kaikoura earthquake have now risen to NZ $2 billion (US $1.46 billion) according to the Insurance Council of New Zealand.