Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS) today notified the Tel Aviv Stock Exchange (TASE) that its wholly-owned UK subsidiary Broadgate Underwriting Ltd., syndicated with Lloyds of London, faces NIS 28 million in losses from Friday's earthquake and tsunami in Japan. The preliminary estimate is based on underwriting year 2010, and does not include the cost of reinsurance purchases by Broadgate, whose residual is estimated at NIS 11-17 million.
The exposure to Japan comes on top of the company's exposure to the Christchurch earthquake in New Zealand on February 22, estimated at NIS 18 million for underwriting year 2010, and NIS 14 million for underwriting year 2011 (including the cost of reinsurance purchases). The estimate is based on the earlier earthquake in New Zealand in September 2010 and on market estimates from the February quake.
Ham-Let (Israel-Canada) Ltd. (TASE: HAML), a manufacturer of valves and fittings, notified the TASE that Japan accounted for 15% of the company sales in 2010. The company's offices in Japan were not damaged in the earthquake, and all employees are safe. However, the subsidiary's warehouse, which stores inventory booked at NIS 1.4 million, and it is difficult to estimate damage caused or how much this will be covered by insurance.
Both Clal Insurance and Hamlet are units of Nochi Dankner-controlled IDB Holding Corp. Ltd. (TASE:IDBH). Clal Insurance's share price fell 3.7% by midday to NIS 89.60, giving a market cap of NIS 5.15 billion, but Ham-Let's share price rose 2.2% to NIS 27, giving a market cap of NIS 364 million
Published by Globes [online], Israel business news - www.globes-online.com - on March 13, 2011
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