Tokio Marine & Nichido Fire, a subsidiary of Tokio Marine Holdings, has announced that it expects to incur losses from the heavy rainfall that impacted Japan in July, 2018 of approximately 50 billion yen (US$451.9 million).
Southwest Japan was hit by intense rainfall and subsequent flooding in the month of July, which caused widespread property damage and claimed the lives of 225 people.
Tokio Marine & Nichido Fire’s incurred loss estimate from the floods is based on information available as of August 2nd, 2018. And, the insurer explains that its incurred loss estimate is on a direct basis, which includes the total amount of claims paid and outstanding claims, as well as incurred losses but not reported as of August 2nd, but does not include recoverable amount from ceded reinsurance.
The firm states that it is making its “utmost efforts to ensure prompt and appropriate claim payments to help customers recover from the damages as quickly as possible.”
Furthermore, the company feels that its sufficient equity capital means the losses reported on herein “will have a minor impact on the financial soundness of Tokio Marine Holdings.”
Tokio Marine & Nichido Fire’s announcement comes shortly after MS&AD said that it expects the July floods in Japan to result in a $600 million loss. While fellow Japanese insurer, Sompo Holdings, said that it expects roughly $343 million of catastrophe losses in the last quarter, which includes the impacts of the July rainfall. However, Sompo has not yet broken out the rainfall and flooding costs at this time.
Many parts of Japan experienced up to three times the total average rainfall for the month of July in a matter of days during the flooding, with 364mm recorded in just two hours in Uwajina.
Some experts have attributed the unusually heavy rainfall to the remnants of a typhoon feeding into a seasonal rainy front, which was intensified by an influx of humid warm air from the Pacific.