December 14: Business Briefs

FRIDAY, DEC. 14:

Tokio keeps aa+ rating

A.M. Best Co. has affirmed the financial strength rating of A++ (Superior) and issuer credit rating of “aa+” of Tokio Millennium Re Ltd. (TMR) (Bermuda).

The outlook for both ratings is stable.

TMR is a wholly owned subsidiary of Tokio Marine & Nichido Fire InsuranceCo., Ltd. (TMNF), which is the main trading subsidiary of Tokio Marine Holdings, Inc. (Tokio Marine Group).

Both companies are domiciled in Tokyo, Japan.

The ratings reflect TMR’s superior financial strength, favourable operating performance over the last several years and its prudent risk managementpractices.

In addition, the ratings are enhanced by the implicit and explicit support provided by TMNF.

The ratings also consider TMR’s strategic importance to Tokio Marine Group’s initiatives to geographically diversify its catastrophe risks as well as enhance its enterprise risk management function.

Tokio Marine Group has unified its global reinsurance brand under TMR over the past few years.

Sandy’s losses

XL announced its preliminary net loss estimate related to Hurricane Sandy to be $30 million pretax and net of reinsurance and reinstated premiums.

Approximately 60 per cent of the company’s estimated loss relates to the reinsurance segment.

Within the reinsurance segment, the loss estimate is compromised 20 per cent for marine and 80 per cent for property.

Earlier this week ACE Limited estimated its losses to be $380 million after tax, net of reinsurance and including reinstatement premiums.

An ACE press release said this estimate includes losses generated from the company’s commercial and personal property and casualty insurance businesses as well as its reinsurance operations. Due to the size and complexity of the storm and related losses, the estimate is subject to change.

The company is updating full-year 2012 guidance to reflect the catastrophe losses and other adjustments currently projected for the quarter. The range is now $7.43 to $7.53 per share of after-tax operating income for the year.

Montpelier Re Holdings Ltd. currently estimates its pretax net loss incurred from Superstorm Sandy in the fourth quarter will be approximately $95 million, which is net of reinsurance recoveries and reinstatement premiums.

AIG estimated its losses could exceed $1.3 billion.

Industry experts expect the total could exceed $20 billion.