May 4: Business briefs

Insurer raises Japan quake loss estimate

PartnerRe Ltd has estimated that the Tohoku earthquake in Japan will cost the company $730 million.

The firm has reserved an additional $230 million for expected losses for the earthquake and subsequent tsunami.

Costas Miranthis, PartnerRe president and CEO, said:  “We received new information from a long-standing large cedant in the region for whom we underwrite several treaties, including some underwritten on an exclusive basis at pricing not available to the broader market.

“While this information remains limited, it is prudent to increase our loss estimate at this time, including reserving the full limit of our exclusive arrangements.

“Although the Tohoku earthquake loss is a significant one for PartnerRe, we continue to believe in the value of diversification in a catastrophe portfolio and we will continue to pursue transactions which optimize our long-term risk-adjusted returns.”

The net loss for these events will be recorded in the company’s first quarter 2011 results, issued on Monday.

Everest Re reports loss

Everest Re Group Ltd has announced a bigger-than-expected first quarter loss due to the disasters in Japan, New Zealand and Australia.

The Bermuda-based company reported an operating loss of $323.6 million ($5.95 per share) compared with $73.8 million ($1.25 per share) the previous year.

Seadrill announces TRS deal

Seadrill has settled a Total Return Swap agreement expiring on May 2, 2011, with 2,000,000 common shares in Seadrill Ltd as underlying security.

The company has now entered into a new TRS agreement with exposure to 2,000,000 Seadrill Ltd common shares.

Seadrill Ltd is based on Par-la-Ville Road, Hamilton.

The expiry date for the TRS is September 2, 2011.

Seadrill has also, through market purchases executed May 2, repurchased 145,000 of the company’s own common stocks at an average price of NOK186.26 per share.

The firm has increased its holding of treasury shares from 1,350,687 to 1,495,687.

Endurance’s $88m loss

Endurance Specialty Holdings has reported a net loss of $87.4 million for the first quarter of 2011.

This compares with a net income of $55.8 million for the same period last year.

Net premiums written were $798.9 million, an increase of 13.6 per cent from 2010.

Net investment income was $52.5 million — a drop of $4 million from the previous year.

Operating loss — which excludes after-tax realized investment gains and losses and foreign exchange gains and losses — stands at $96.6 million.

Book value per diluted common share is $51.52, down 2.3 per cent from December 31, 2010.

David Cash, chief executive officer, said: “Our first quarter results were impacted by the exceptional frequency and severity of global catastrophe losses that occurred.

“I am pleased with Endurance’s performance through these events as our losses were within our expectations and tolerances for these types of events, a testament to the quality of our underwriting and risk management.”

Argo dividend

Argo Group International Holdings has declared a quarterly cash dividend of 12 cents per share on the company’s common stock.

The company is an international underwriter of specialty insurance and reinsurance products.

The dividend will be paid on June 15 to shareholders of record on June 1.

Majestic delists

Bermuda-based Majestic Capital is voluntarily delisting from the Nasdaq stock exchange, effective from May 9. Nasdaq sent a delisting notice to Majestic last month, saying the insurer failed to file its 2010 10K on time.

Flagstone loss

Flagstone Reinsurance Holdings has reported a net loss of $161.2 million for the first quarter.

This compares with net income of $31.5 million in the same period last year.