Swiss Re estimates paying $800 million for claims related to New Zealand earthquake

Swiss Re estimates its claims costs arising from the Feb. 22, 2011 earthquake in Christchurch, New Zealand will be approximately $800 million, net of retrocession and before tax.
Swiss Re estimated total insured claims for the insurance sector for the earthquake in New Zealand would be between $6 billion and $12 billion.
The magnitude 6.3 earthquake has killed at least 155 people and caused widespread damage in the Christchurch region of the South Island of New Zealand.
Take up rates for earthquake insurance are high in New Zealand, Swiss Re notes.
“Residential properties are insured by the government-run Earthquake Commission scheme (EQC) up to $100,000 per building policy and $20,000 per contents policy,” Swiss Re notes. “Householders can purchase private insurance above the $120,000 cover provided by the Earthquake Commission. Commercial and industrial risks are insured by local and global insurance companies.”