IAG said that its New Zealand businesses, which include State and NZI, were rapidly mobilising in response to the destructive 6.3 magnitude earthquake that struck the Christchurch region yesterday.
IAG Managing Director and CEO, Mr Mike Wilkins said: “Our primary concern is for the people affected by this catastrophe and we are focused on providing assistance to our customers and staff as quickly as possible.”
“This event is particularly devastating, given the region is still rebuilding following the previous major earthquake, in September 2010.”
“While still far too early to determine the extent of damage from this latest event, our reinsurance covers mean that the maximum financial impact on the Group would be $40 million,” Mr Wilkins said.
In the wake of this event, IAG has revised its FY11 insurance margin guidance down to 8%–10% (from 9%–11%) to reflect an increased natural peril cost assumption of $540 million (from $500 million) and the estimated cost of reinstatements in respect of its catastrophe reinsurance cover.
IAG will be releasing its detailed 1H11 results tomorrow, 24 February 2011.
Source : IAG Press Release
