Chile Quake: Everest Expect $225 Million Loss

Bermuda reinsurer Everest Re Group Ltd said it expects losses of approximately $225 million related to the recent earthquake in Chile.

The powerful February 27 earthquake left hundreds dead, many more missing and caused catastrophic damage. Rated a magnitude of 8.8, it is the seventh largest earthquake by magnitude, exceeding the earthquake in Haiti earlier this year.

Everest joined fellow Bermuda based reinsurer PartnerRe, who also announced preliminary estimates of $220-$320 million worth of claims from the quake. Joining Everest and PartnerRe is Bermuda based RenaissanceRe, who 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”.

Everest’s current estimates for these events are based on underwriters’ preliminary analyses and judgments, client input and discussion, event modeling and profiling of exposed limits.

The Company expects it will be several months before relative clarity emerges with respect to its ceding companies’ underlying losses from these the events and as new information emerges these estimates may need to be adjusted.

Everest Re shares closed at $82.64 Wednesday on the New York Stock Exchange.

Chairman and CEO Joseph V. Taranto said:

We are extending our full support to our ceding company clients as they deal with the devastation caused by these events. Ours is a business of risk and we have ample capacity to absorb these losses. As such we are prepared to handle these claims in an effective and efficient manner.

Images from the Chilean Earthquake:

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