XL Estimates NZ Quake: $70-$85 Million
XL Group today [Mar.9] announced preliminary net loss estimates for the earthquake that struck Christchurch, New Zealand on February 22, 2011
XL’s preliminary loss estimates related to the New Zealand Earthquake, pretax and net of reinsurance and reinstatement premium, range from approximately $70 million to $85 million, the majority of which is attributable to XL’s reinsurance segment.
A spokesperson said, “The Company’s estimates are based on its review of individual treaties and policies expected to be impacted and client data received to date and has taken into account current total insured market loss estimates, both from published sources and the Company’s internal analysis.”
“These preliminary loss estimates correspond to expected insured market losses for the New Zealand Earthquake in the range of $8 billion to $12 billion. Given there is currently a wide range of estimates for the extent of total economic and insured industry losses, the Company’s loss estimates involve the exercise of considerable judgment and are accordingly subject to revision as additional information becomes available. Actual losses may differ materially from these preliminary estimates.”
