Bermuda Reinsurer Chile Estimates Hit 2 Billion
The catastrophic earthquake in Chile on Feb 27, 2010 is projected to be the most expensive insured loss in Latin American history, according to analysts at the international broker Cooper Gay.
The powerful earthquake registered 8.8 on the Richter Scale and caused significant destruction. NASA reports that the magnitude 8.8 earthquake in Chile may have shortened the length of each day up to 1.26 microseconds as it was so powerful it shifted Earth’s axis.
Pushing the combined estimates in the two billion range, Bermuda-domiciled White Mountains Insurance Group Ltd is the most recent Bermuda based company to provide a loss estimate from the Chilean earthquake; saying it will be in the range of $55 – $145 million pretax.
Other 2010 Earthquake/Storm Estimates Given by Bermuda Based Reinsurers to date include:
- 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”.
According to the Association of Bermuda Insurers and Reinsurers [ABIR], a group of 23 Bermuda domiciled [re]insurers, 15 of the top 35 reinsurers in the world are based in Bermuda.
Property catastrophe reinsurance is a major part of the Bermuda international business segment. A relative catastrophe free 2009 allowed many Bermuda based reinsurers to make good profits, rejuvenating from a hard hitting 2008.
Bermuda’s reinsurers paid nearly 30% of the insured losses from 2005 Hurricanes Katrina, Rita and Wilma, and paid $22 billion to rebuild the US Gulf and Florida coasts from the destructive hurricanes seasons of 2004 and 2005.
