Arch Capital: Chile Losses of $35 to $55 Million
Bermuda based Arch Capital Group Ltd announced that it expects pre-tax earnings for the 2010 first quarter to be negatively impacted by the effects of the Chilean earthquake in the range of $35 million to $50 million, net of reinsurance, retrocessions and reinstatement premiums.
This preliminary net loss estimate for the Chilean earthquake is based on projected industry insured losses of $6 billion to $8 billion.
In addition, the Company announced that it expects pre-tax earnings for the 2010 first quarter to be negatively impacted by the combined effects of European Windstorm Xynthia and the Australian hailstorms and floods in an aggregate amount of less than $15 million, net of reinsurance, retrocessions and reinstatement premiums.
The Company’s actual losses from these events may vary materially from the estimates due to the inherent uncertainties in making such determinations resulting from several factors.
Arch Capital Group Ltd., a Bermuda-based company with approximately $4.7 billion in capital at December 31, 2009, provides insurance and reinsurance on a worldwide basis through its wholly owned subsidiaries.
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
- Allied World expect a loss of $55 to $75 million dollars
- Argo Holdings project a loss of $25 to $35 million
- RenaissanceRe said the impact on its financial results “will be significant and could be material”.
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