Oil Rig Explosion To Cost Catlin $40 Million
Bermuda based Catlin Group Ltd estimates its exposure to physical damage and liability claims arising from the Deepwater Horizon disaster to be approximately $40 million, net of reinsurance and reinstatements.
The Deepwater Horizon oil rig explosion in the Gulf of Mexico on April 20 explosion killed 11 workers, and the subsequent oil spill is causing what experts say is significant environmental damage.
CEO Stephen Catlin referenced the Chile Earthquake and oil rig explosion, and said the losses are within Catlin’s planning margins, however warned that further exceptional losses during 2010 will likely have an impact on the Catlin’s financial results for the year.
Catlin also said the incident is expected to be the biggest energy market insurance loss scenario in more than 20 years, since the Piper Alpha oil platform fire in 1998. The Piper Alpha explosion and resulting fire on July 6, 1988, killed 167 men, including 2 rescue workers. Total insured loss was approximately $3.4 billion, and the incident remains the world’s worst offshore oil disaster in terms both of lives lost and impact to industry.
Transocean has collected $481 million from a $560 million insurance policy on the Deepwater Horizon rig, Chief Financial Officer Ricardo Rosa said.
