Reinsurance to cover most of insurer’s New Zealand quake claims

Australian insurer Suncorp Group Ltd.'s subsidiary Vero Insurance New Zealand Ltd. expects its "strong reinsurance arrangements" to cover "all expected claims" from the magnitude-7.8 earthquake that struck New Zealand on Nov. 14, Artemis.bm reports. Vero has received more than 1,000 claims from the quake. A few insurance-linked securities funds managers said that there is a chance of some minor losses falling to the ILS market through collateralized reinsurance and retrocession contracts. U.S.-based AIR Worldwide estimates loss from the quake to range between $762 million and $3.5 billion.

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