Insurance firm Swiss Re has projected the claims from Japan due to the devastating earthquake and tsunami at about $1.2 billion (£738 million). However, the world’s second biggest reinsurance firm said it may be months before the final figures are announced.
Last week US insurance giant AIG had said it expects to receive claims worth at least $700 million. Analysts say the final settlement bill for insurance and reinsurance firms could be around $35 billion, excluding any claims from the badly damaged Fukushima Daiichi nuclear power plant.
Shares of insurance companies have been hammered in exchanges around the world since the disaster hit Japan, but Swiss Re gained yesterday after the figures released by the company was found to be lower than estimated.
However, the company faces claims worth $800 million from the February earth quake in New Zealand.
“We will be able to absorb current estimates for claims and still maintain significant excess capital”, a statement issued by Swiss Re said.
It further added that losses arising from the Fukushima power plant are unlikely to be significant for property and casualty insurers.