Allied: Earthquake Claims of $55 to $75 million
Bermuda based reinsurer Allied World Assurance Company Holdings, Ltd announced today that its initial loss estimate for the recent catastrophe event in Chile ranges from $55 million to $75 million and its initial estimate for European Windstorm Xynthia is $2 million. Both estimates are pre-tax and net of reinsurance.
President and Chief Executive Officer Scott Carmilani commented
Allied World’s estimated losses from the catastrophe events that have taken place in the first quarter are well within our accepted risk tolerances and are in line with our assessments of account risks and aggregate exposures for the areas affected and compared to our models thus far.
Given the size and magnitude of the earthquake in Chile, we remain focused on helping our customers directly affected with claims assessments and claims support during the recovery and engineering efforts to get back to business.
Allied World’s loss estimates for these events are derived from preliminary information obtained from clients and brokers, a review of the terms of in-force policies and contracts and from its catastrophe modeling analysis. Actual losses from these events may vary materially from the current estimates due to inherent uncertainties resulting from several factors.
2010 Earthquake/Storm Estimates Given by Bermuda Based Reinsurers to date exceed a billion:
- Everest Re Group Ltd said it expects losses of approximately $225 million related to the Chilean earthquake.
- PartnerRe expect to receive claims of $220-$320 million after the severe damage caused by earthquake in Chile
- Platinum announced an initial loss estimate of $85 million from first quarter 2010 catastrophe events.
- Validus provided an initial estimate of losses from the earthquake and windstorm of $170 to $270 million.
- Flagstone said its estimated losses from claims related to the recent earthquake in Chile will be $50 million
- Max Capital projects claims of $10 – $20 million
- Axis expects claims of $60 – $120 million from the quake, and $10 – $20 million from storm
- Montpelier Re expects losses of $75 – $100 million from the earthquake
- Hiscox Ltd estimate a combined net loss of approximately $151 million
- XL Capital said estimated first quarter claims could top $200 million
- Ace Limited expect a loss of $125 million, $75 million from Chile alone
- RenaissanceRe said the impact on its financial results “will be significant and could be material”.
