Reinsurers Seeing Downside on Uncertainty of Japan Earthquake Outcome (FSR) (RE) (PRE)
Tweet
Share
E-mailGet Alerts RNR Hot Sheet
Join SI Premium – FREE
Reinsurers are seeing downside today as the market is pricing in the potential fallout of today's earthquake in Japan.
Companies like RenaissanceRe (NYSE: RNR), Axis Capital (NYSE: AXS), and Everest Re (NYSE: RE) are each down 2% if not 3% today. The reinsurers are still recovering from a recent earthquake in New Zealand, which happened in February, which some have estimates of $12 billion in costs to reinsurers.
However, one report says that the earthquake didn't hit a key epicenter of Japan, and losses will be limited compared to if the quake was closer to Tokyo, Osaka, or other major areas.
Leading the group lower today is Flagstone Re (NYSE: FSR), which is down 9.6% on the day.
None of the major re's have commented about the potential costs to their companies. Most reinsurers receive a larger hit that primary insurers, as they're the last resort for primary insurers to pass along some of the exposure from their clients. In events of catastrophe, primary insurers can claim some of their costs back from them.
Companies like RenaissanceRe (NYSE: RNR), Axis Capital (NYSE: AXS), and Everest Re (NYSE: RE) are each down 2% if not 3% today. The reinsurers are still recovering from a recent earthquake in New Zealand, which happened in February, which some have estimates of $12 billion in costs to reinsurers.
However, one report says that the earthquake didn't hit a key epicenter of Japan, and losses will be limited compared to if the quake was closer to Tokyo, Osaka, or other major areas.
Leading the group lower today is Flagstone Re (NYSE: FSR), which is down 9.6% on the day.
None of the major re's have commented about the potential costs to their companies. Most reinsurers receive a larger hit that primary insurers, as they're the last resort for primary insurers to pass along some of the exposure from their clients. In events of catastrophe, primary insurers can claim some of their costs back from them.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Piper remains bullish on this beverage stock, citing 'best-in-class execution'
- Goldman flags 2 Japanese tech stocks to buy
- UBS flags this name, sees "significant potential for stock outperformance"
Create E-mail Alert Related Categories
Insiders' BlogSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
