News eDaily17 Oct 2017

Japan:Insurers face nearly US$2-bln bill for US, Mexico disasters

17 Oct 2017

Japanese insurance groups Tokio Marine Holdings, MS&AD Insurance Group Holdings and Sompo Holdings could pay out more than JPY200 billion (US$1.78 billion) in total for damages caused by the recent hurricanes in the US and major earthquakes in Mexico.

Tokio Marine said that it expected to pay about JPY65 billion, which would be the company's biggest payout for natural disasters overseas since the JPY130 billion in losses stemming from the 2011 floods in Thailand, reported The Nikkei.

The payout would also put downward pressure on full-year earnings. The group is projecting a JPY280-billion net profit for the fiscal year ending March next year, assuming roughly JPY47 billion of disaster-related payouts overseas.

MS&AD has said it expects to pay out about JPY70 billion to JPY110 billion in connection with the North American hurricanes and earthquakes. Sompo has yet to announce an estimate, but is seen coming up with a similar figure.

Hurricanes Harvey, Irma and Maria hit the US in succession in August and September. Mexico was rocked by powerful quakes last month.

The three insurers paid out a total of about JPY500 billion owing to the Thai floods, which resulted in a combined JPY260 billion underwriting loss for the fiscal year ended March 2012.


 

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