Flagstone Reinsurance Holdings, SA has significant reinsurance protection coverage for its Japan exposure and is currently assessing the impact of the earthquake and tsunami, its CEO David Brown revealed yesterday.The company also announced preliminary loss estimates of between $60 million and $90 million for last month’s New Zealand earthquake, net of reinstatement premiums and retrocession.Its estimates were based on an estimated industry loss of around $8 billion and $12 billion.“We do not expect any significant increase in our loss from the New Zealand quake due to our reinsurance protection even if the industry loss continues to increase and exceeds the high end of our industry loss estimate,” said Mr Brown.“The human toll of the recent earthquake and tsunami that struck Japan is significant, and our chief concern is supporting our clients and their customers at this difficult time. Along with our entire industry, we are currently assessing the financial impact of these events.“While it is too early to make a reasonable estimate of the company’s losses, we do have significant reinsurance protection covering this and subsequent events, particularly should the size of the industry losses increase.“Despite the unprecedented series of events affecting our industry the last several months, we expect Flagstone to maintain its strong capitalisation and solid financial position with a capital margin relative to the AM Best “A-” rating as we continue to execute our business goals and initiatives.”Flagstone’s shares have fallen 20.7 percent since the close of regular trading on Thursday, the day before the Japanese earthquake struck.