Hardy hit from Japan quake to be £12m

By Daily Mail Reporter
Updated: 06:07 EDT, 7 April 2011

Hardy became the latest Lloyd's of London insurer to count the cost of last month's Japanese quake, warning yesterday that the catastrophe will trigger claims of between £9m and £12m.

Pay-outs: £9m-£12m hit is much smaller than some insurers will take

The hit was considerably smaller than the losses likely to be sustained by Hiscox and Amlin, which recently flagged up potential pay-outs of £60m and £150m respectively.

Echoing comments from Amlin this week, Hardy said there were signs that the Japanese and New Zealand earthquakes were driving insurance prices higher.

The natural disasters had 'a positive impact on the rating environment generally', said Hardy.

The company, which last year warded off a takeover approach by rival Beazley, has had to endure four years of falling prices.

But experts believe that a raft of catastrophes over the past year and a half will reduce capital cushions across the industry.

This will force some cash-strapped insurers to pull back, giving the survivors leeway to hike their prices.

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