New Zealand earthquake insurance bill over $16 billion

Insurance companies are prepared to pay $4 billion (NZ$5 billion) in 2012 for last year’s Canterbury earthquakes and another $12.2 billion in 2013, according to the Insurance Council of New Zealand.

The council said the bulk of the liabilities for the February 2011 earthquake and aftershocks have yet to be settled. Insurers paid out roughly $1.2 billion in quake-related claims during 2011.

Overall results for the insurance industry in New Zealand showed incurred claims of $2.7 billion, loss ratio of 111.81% and a combined ratio of 146.3%, according to the council.