PartnerRe see’s $500m Japan loss, including exposure to catastrophe bonds

Bermudian reinsurer PartnerRe Ltd. has provided an initial estimate for the magnitude of losses that it believes it will face because of the earthquake and tsunami of March 11 in Japan. They believe that the total net impact of these events will be approximately $ 500 million, mostly in their disaster.

PartnerRe said the estimated losses are related to their overall non-life exposures and certain securities related to insurance that they believe should be affected by events in Japan.

PartnerRe are known to be an investor in catastrophe bonds and other securities related to insurance. It seems likely that they can gain exposure to the obligation Muteki Ltd. cat should be a total loss.

Yesterday, we reported that Alterra Capital has revealed that they have a £ 25m exposure to the earthquake in Japan linked cat bonds. Will be interesting to see what proportion of any loss catastrophe bonds in Japan to return to reinsurers.