Aspen Insurance: Up to $110 Million for Chile
Bermuda based Aspen Insurance Holdings Limited today announced its preliminary loss estimates for the earthquake which struck off of the southern coast of Chile on February 27, 2010, European Windstorm Xynthia and the Australian hailstorms and floods.
Aspen’s preliminary loss estimate for the Chilean earthquake is in the range of $70 million to $110 million, net of tax and reinstatement premiums. This loss is virtually all derived from Aspen’s reinsurance operations with the Company’s insurance business accounting for less than $0.5 million.
Aspen’s preliminary net after tax loss estimate for Windstorm Xynthia is less than $5 million, net of reinstatement premiums, with its reinsurance operations accounting for the entire loss.
The Company expects its exposure to the Australian hailstorms and floods to be negligible.
Chris O’Kane, Chief Executive Officer said:
We are deeply saddened by the tremendous human and economic losses caused by these natural catastrophes and are entirely committed to supporting our clients as they recover from the devastation. Aspen’s diversified portfolio of insurance and reinsurance products responded as we had expected for events such as the Chilean earthquake, Windstorm Xynthia and the Australian hailstorms. This demonstrates the strength of our risk management framework and robust underwriting standards.
Aspen’s estimated losses from each of those events are preliminary and the actual net impact on Aspen’s results arising from these events may differ materially from the current estimate.
Aspen provides reinsurance and insurance coverage to clients in various domestic and global markets through wholly-owned subsidiaries and offices in Bermuda, France, Ireland, Singapore, the United States, the United Kingdom, and Switzerland. For the twelve months ended December 31, 2009, Aspen reported gross written premiums of $2,067.1 million, net income of $473.9 million and total assets of $8.3 billion.
2010 Earthquake/Storm Estimates Given by Bermuda Based Reinsurers to date total around $2 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
- Arch Capital expect claims of $35 to $55 million
- Lancashire Holdings estimates its net losses at approximately $65 to $125 million
- Catlin Group estimates $140 for Chile, and less then $10 million for Xynthia
- RenaissanceRe said the impact on its financial results “will be significant and could be material”.
- White Mountains Insurance provided a loss estimate of $55 – $145 million
