Chile Quake:Hiscox Estimate $150 Million Loss

Bermuda based Hiscox Ltd announced that from initial estimates, they estimate a combined net loss of approximately $151 million from the Chile earthquake.

Hiscox stated:

Hiscox underwrites no specific Chilean reinsurance programmes, but has exposure through its underwriting of global and regional reinsurance and retrocessional programmes. Hiscox has no material direct insurance exposure to this event.

The breadth of these ranges reflect market uncertainties and this could lead to a later revision of Hiscox’s estimate.

This estimate is within budgeted losses for such events and the Group has reinsurance cover remaining for other catastrophes. Hiscox believes these losses will result in the firming of some reinsurance rates.

2010 Earthquake/Storm Estimates Given by Bermuda Based Reinsurers to date exceed a billion dollars:

• 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
• RenaissanceRe said the impact on its financial results “will be significant and could be material”.

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