Chile: PartnerRe Expect Claims of Over $220 Million

March 9, 2010

Bermuda based reinsurance company PartnerRe expect to receive claims of $220-$320 million after the severe damage caused by the devastating earthquake in Chile last month. The earthquake occurred off the coast of the Maule Region of Chile on February 27, 2010, at 3:34 local time.

Rated a magnitude of 8.8 on the magnitude scale, it lasted approximately three minutes and caused catastrophic devastation. The death toll is believed to be in the hundreds.

The quake was so powerful it actually moved an entire City ten feet. The earthquake has the dubious distinction of being the seventh largest by magnitude, far exceeding the earthquake in Haiti earlier this year.

In reference to the claims PartneRe stated:

The Company expects that total insured industry losses from the M8.8 earthquake in Chile, which hit on February 27, 2010, will be in the range of approximately $6-$10 billion.

Within this context, the Company expects its claims relating to the earthquake will be between $220-$320 million pre-tax and are expected to be contained primarily within the Global Property & Casualty, Catastrophe and PARIS RE sub-segments.

PartnerRe is a leading global reinsurer, providing multi-line reinsurance to insurance companies. For the year ended December 31, 2009, total revenues were $5.4 billion, total assets were $23.7 billion, total capital was $8.0 billion and total shareholders’ equity was $7.6 billion.

Images from the Chilean Earthquake: