Bermuda-based insurer Catlin’s exposure to the first-quarter catastrophes in Japan, Australia and New Zealand has stabilised at $US375 million ($356 million), net of reinsurance and reinstatement premiums.

CEO Stephen Catlin says although the true cost of these tragedies will not be known for months, it’s expected they will end up as an “earnings event rather than a capital event” for his company.

“Rates for certain classes of business are starting to rise following the first-quarter catastrophes,” he said in a statement. “Combined with a prolonged low investment returns environment, it would be totally appropriate for rates to increase on a widespread basis.”

Mr Catlin says the group is well placed to deal with further weather-related events, and “much of the losses from another major event – such as an Atlantic windstorm – will be recoverable”.

The company’s first-quarter gross written premium (GWP) has risen by 11% above the corresponding period last year to reach $US1.4 billion ($1.32 billion).

Catlin continues to reduce the amount of business it writes in the London wholesale market, with 52% of total GWP now written by non-London or UK underwriting hubs – a fall of 10%.

It recorded an 8% drop in casualty business and a 4% decrease in both aerospace and property premiums, while energy and marine business increased by 8%.