The scope and magnitude of the earthquake and tsunami in Japan have been widely reported in the media during recent days. Several members and brokers have inquired about the impact on AEGIS and our member companies.
Our property facility in New Jersey does not have any exposure to the widespread damage in Japan and we understand that our member companies with operations in Hawaii, California and other areas of the West Coast did not sustain any damage from the waves that radiated across the Pacific from Japan.
AEGIS London, however, does have some exposure through their varied subscription writings. Although it is still too early to estimate any losses and their affect with reliable accuracy, overall, we believe the Syndicate will sustain some significant but manageable earthquake and tsunami-related losses. Our current early estimate based on the preliminary information available is that our net loss will be on the order of $25 million. Losses of this magnitude fall within the possibilities we regularly have envisioned for significant natural disasters. We will continue to analyze the potential exposure and will provide you with the appropriate updates.