CAT LOSSES PUSH US REINSURERS TO $100M Q1 NET LOSS

The 19 members of the Reinsurance Association of America swung to a cumulative Q1 net loss of $100.6m from year-earlier profits of $2.43bn largely owing to losses from catastrophes in Australia, New Zealand, Japan and elsewhere, according to figures compiled by the RAA. The reinsurers' combined ratio jumped to 129.3% from 102.2%, as claims costs jumped 47% to $6.10bn and earned premiums rose 5.6% to $6.03bn. The underwriting loss for the quarter was $2.07bn, more than six times the year-earlier loss of $328.5m. Besides cat losses, the group's results were also hurt by a swing to $255.1m in realized capital losses from year-earlier gains of $1.81bn. Partially offsetting that swing, investment income jumped 68% to $2.19bn. Berkshire Hathaway's National Indemnity unit posted Q1 net income of $236.2m, which was the highest of any RAA company even though the figure was down 89% from Q1 2010. Sister company General Re had the second highest income at $151.3m, more than three times the year-earlier $43m. Companies with the highest losses included Odyssey Reinsurance ($327.3m versus a gain of $6m), Transatlantic Re ($168.9m versus income of $31.9m) and Everest Re ($124.8m versus a year-earlier loss of $11.3m). The RAA members' policyholder surplus stood at $107.55bn at end-March, up from $101.29bn a year earlier.