Insurer estimates Christchurch quake cost at $1.5 billion

The Christchurch quake will cost Lloyd's of London $1.5 billion. Photo / Sarah Ivey

Lloyd's of London, the world's largest insurance market, has estimated net claims before tax from the February earthquake that devastated much of central Christchurch to be more than US$1 billion.

The total for the quakes here and in Japan as well as the Australian floods cost the bank US$3.8 ($4.81) billion.

Lloyd's said today that breaks down into US$1.2 ($1.52) billion for the New Zealand earthquake, US$1.95 billion for the Japan earthquake and tsunami and US$650 million for the Australia floods.

It cautions that the final net claims figure "may vary" from the preliminary estimates, but says they are consistent with industry losses of US$30 billion for Japan, US$9 billion for New Zealand and US$5 billion for Australia.

Lloyd's adds there won't be a material impact on its capital and there isn't expected to be any Central Fund exposure - its fund of last resort - from the trio of events.

- NZPA