Earthquakes in Chile and New Zealand had already shaken the likes of Hiscox, Amlin, Catlin and Swiss Re and yesterday the tremors reached Omega Insurance, which plunged to a $42.8 million (£26.4 million) loss. The Lloyd’s of London insurer was left with a $65 million bill after the quakes, flooding in Queensland and hailstorms elsewhere in Australia. It made profits of $43.6 million the previous year.
The fall at the insurer raised question marks over scheduled takeover talks with Canopius, a private equity backed rival that approached the group last month.
It also overshadowed a 34 per cent rise increase in gross written premiums to $356.1 million for the year.
Omega blamed previous management as it halved the total dividend from 12.5 cents to 6 cents.