Bermuda-based Ariel Reinsurance Company, the reinsurance subsidiary of Ariel Holdings Ltd, has announced initial loss estimates of $35 million to $50 million for catastrophes in the first half of 2011, including the Tohoku Earthquake in Japan.The other catastrophes include the Christchurch earthquake, Cyclone Yasi, Australian flooding and Gryphon Alpha.Ariel Re said that due to the highly selective approach it had adopted to underwriting catastrophe exposures since the company’s formation in late 2005, its incurred losses from last year’s Chile and New Zealand earthquakes were less than $24 million or about 1.5 percent of 2010 beginning shareholders’ equity, and a 2010 net income of $216 million further contributed to the company’s strong capital position. The company said that in the absence of additional events, both Ariel Re and Ariel expected to report positive net income for the first quarter of 2011.