Max Capital Expect $10 – $20 Million in Claims

Bermuda based reinsurance company Max Capital Group Ltd today announced that preliminary estimates of combined claims for the Chilean earthquake and European storm Xynthia could range from $10 million to $20 million.

The estimate is provided net of reinstatement provisions and retrocessions.

The company’s loss estimates are based on proprietary modeling analysis, the assessment of individual treaties, and data from clients and brokers. Additionally, aftershocks are continuing in Chile with no reports as of yet on the extent of any related damages. Significant changes in these loss estimates may occur.

Building destroyed in Concepción after the Feb 27, 2010 Chile Earthquake

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Chairman and CEO of Max Capital Marston “Marty” Becker said

Our projected claims from the Chilean earthquake and storm Xynthia are well within our normal loss provisions. In addition, in connection with Max’s previously announced pending merger with Harbor Point Limited, we believe that the equivalent preliminary estimate, on a pro forma basis after giving effect to the combination, would have been in the range of $30 million to $50 million, net of reinstatement provisions and retrocessions are also within the normal loss provisions for the pro-forma combined organization.

Max Capital Group and Harbor Point recently announced a merger to create ‘Alterra Capital Holdings Limited’, a global insurance and reinsurance company. Alterra is expected to have approximately $3 billion in equity and will trade on the NASDAQ Global Select market under the symbol ALTE.

2010 Earthquake/Storm Estimates Given by Other Bermuda Based Reinsurers:

• 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
• RenaissanceRe said the impact on its financial results “will be significant and could be material”.

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