Validus: Estimate Losses of $170 – $270 Million

Bermuda based reinsurer Validus Holdings Ltd provided an initial estimate of losses from the recent Chilean Earthquake and European Windstorm Xynthia of $170 million to $270 million, net of reinstatement premiums and reinsurance, retrocessional and other recoveries.

Validus Chairman and CEO Ed Noonan said:

Based on current estimates, the Chilean Earthquake is one of the largest non-US events in the history of the global reinsurance market. As one of the world’s leading catastrophe reinsurers, Validus is committed to supporting our clients in Chile and around the world in the aftermath of this devastating event.

Validus also provided an initial estimate of losses from European Windstorm Xynthia. The Company expects its loss to be in the range of $20 million to $30 million, net of reinstatement premiums and reinsurance, retrocessional, and other recoveries.

Validus’ actual losses from these events may vary materially from these estimates due to the uncertainties inherent in this preliminary information.

They join fellow Bermuda based reinsurance companies Everest, PartnerRe, Platinum and Renaissance Re in announcing initial loss estimates.

• Everest Re Group Ltd said it expects losses of approximately $225 million related to the recent earthquake in Chile.
• PartnerRe expect to receive claims of $220-$320 million after the severe damage caused by the devastating earthquake in Chile
• Platinum announced an initial loss estimate of $85 million from first quarter 2010 catastrophe events that have occurred.
• RenaissanceRe also announced that based on its initial assessment, the impact of the Chilean earthquake on its financial results “will be significant and could be material”.

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