Financiers count up cost of quake

As Canterbury's residents count the cost of Saturday's earthquake, so too are the region's businesses and their insurers.
With Christchurch City Council estimating 500 damaged buildings, and business owners allowed into affected areas only to assess damage, State Insurance and NZI have already responded to more than 2000 calls.
Both are part of the Insurance Australia Group, which said it was too early to tell what the final tally would be.
Managing director and chief executive Michael Wilkins said the group expected the extent to be "significant", but would be covered by its reinsurance arrangements.
Suncorp-Metway, operator of Vero New Zealand and AA Insurance, agreed it would be "some time" before an accurate assessment of claims volumes and costs could be provided.
It said its financial exposure was likely to be limited, however, due to the country's statutory framework and the firm's conservative reinsurance arrangements.
Once claims are in and reconstruction starts, the initial negative economic impact of the earthquake is expected to lead into a $2 billion construction boost next year.
But ANZ economist Cameron Bagrie said the immediate future looked negative, with an immediate impact on growth.
"We do know it is going to be negative and it is going to be a drag on growth," he said.
"To what extent and how long it lasts? That would be pure guesswork and I don't think that's responsible."
Bagrie indicated the earthquake damage and the South Canterbury Finance collapse would dent consumer confidence and spending, bringing a conservative outlook to the next quarter.
But the good news was that reconstruction and repairs would provide work for Canterbury's struggling contractors and tradesmen.
ASB chief economist Nick Tuffley said overseas experiences suggested growth in the national gross domestic product could be weak in the third quarter because of the quake.
"However, reconstruction activity will subsequently boost GDP - potentially by 1.5 percentage points," Tuffley said.
New Zealand Contractors Federation southern regional manager Ollie Turner said huge resources were available among the group's members: "We have the capacity to co-ordinate a lot of the rebuilding, because we know which contractors have the competency and expertise in each particular area."