SINGAPORE--(BUSINESS WIRE)--The insured losses from a recent series of earthquakes in New Zealand could be material for some domestic insurance companies, according to an A.M. Best briefing.
The Best’s Briefing, titled, “New Zealand Earthquakes,” states that claims from the earthquakes, which began on Nov. 14, 2016, are likely to impact the underwriting performance of some property insurers, especially those with high-risk accumulation in the upper South Island and the lower North Island. However, it is too early to determine the exact impact that the earthquakes will have on the financial condition of the New Zealand insurance sector as a whole. According to the Insurance Council of New Zealand, total gross written premium of the general insurance industry amounted to approximately NZD 5.3 billion in 2015. IAG and Vero Insurance are the major general insurers in the affected regions.
A.M. Best does not expect to take rating actions on its rated companies in the near term. However, high uncertainty remains with regard to the ultimate insured loss; therefore, the impact on the financial strength of A.M. Best-rated companies with significant exposure in the affected regions will be closely monitored.
To access a copy of this briefing, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=256017.
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