XL Capital: Losses Could Top $200 Million
With combined estimates of Bermuda based [re]insurers losses already well over a billion dollars, the number continues to soar as Bermuda based insurance company XL Capital Ltd estimate their losses could top $200 million.
The Company’s preliminary loss estimates related to the Chilean Earthquake, pretax and net of reinsurance and reinstatement premium, range from approximately $140 million to $205 million, of which $75 million to $85 million is attributable to the insurance segment and $65 million to $120 million to the reinsurance segment.
XL’s preliminary loss estimates related to Windstorm Xynthia, pretax and net of reinsurance and reinstatement premium, range from approximately $20 million to $25 million, and the Company expects that these losses will be borne almost exclusively by the reinsurance segment.
The Company’s estimates are based on its review of individual treaties and policies expected to be impacted and client data received to date and has taken into account current total insured market loss estimates, both from published sources and the Company’s internal analysis.Given there is currently a wide range of estimates for the extent of total economic and insured industry losses, the Company’s loss estimates involve the exercise of considerable judgment and are accordingly subject to revision as additional information becomes available. Actual losses may differ materially from these preliminary estimates.
XL’s Chief Executive Officer, Mike McGavick commented:
Our thoughts are with all of those impacted by these recent catastrophic events. Based on our early reviews of losses on an industry and regional basis, we believe our estimated loss exposures demonstrate the effectiveness of the underwriting processes and risk management culture we have built at XL. In particular, we have prudently managed our net retentions across both the insurance and reinsurance segments.
2010 Earthquake/Storm Estimates Given by Bermuda Based Reinsurers to date exceed a billion dollars:
- 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
- RenaissanceRe said the impact on its financial results “will be significant and could be material”.
