Validus Initial Estimate Of Earthquake Losses
Bermuda-based Validus Holdings, Ltd. provided an initial estimate of losses relating to the August 12th explosion in the port of Tianjin, China and the September 16th earthquake in Chile.
Validus expects to record losses from these events, net of reinstatement premiums and reinsurance, retrocessional and other recoveries in the amount of $63.9 million. This amount is apportioned between Validus’ operating segments as follows:
Description – Validus Re Net Impact – Talbot Net Impact – Total Net Impact [Amounts in USD [millions]]
Tianjin Explosion – $32.7 – $11.2 – $43.9
Chile Earthquake – $15.3 – $4.7 – $20.0
Total – $48.0 – $15.9 – $63.9
The net impact to Validus is based on the Company’s internal models, external reports and other information on the event, and loss reporting from impacted [re]insureds. The absence of significant client loss reporting on these events has caused the loss estimates to be established primarily on the basis of exposure analysis and industry loss estimates. Due to limited reported losses, the complexity of the events and uncertainties inherent in this preliminary information, Validus’ actual ultimate losses from these events may vary materially from this initial estimate.
