Quakes could triple price of property reinsurance

7:21 am on 27 June 2011

Credit rating agency Standard Poor's says the Christchurch earthquakes will triple the price of reinsurance covering property.

Standard Poor's says rates will be renewed from next month, and will more than triple in some cases for New Zealand-only placements.

The agency says major insurers have already raised their prices by 20% for property-related cover to recoup some of the reinsurance price increases.

Standard Poor's says that, despite the uncertainty, it does not expect any major insurers to have their credit ratings downgraded.

But it maintains a negative rating outlook on some of the non-life insurance sector in New Zealand, with some uncertainty around the ultimate cost of claims, and the effect that claims and reinsurance pricing will have on earnings.