Everest Re Estimates Chile Quake Loss at $225 Million; Xynthia $25 Million

The Bermuda-based Everest Re Group announced that its preliminary loss estimate for exposures relating to the earthquake in Chile is $225 million.

It also estimated its loss for expected claims from European Windstorm Xynthia to be approximately $25 million. “Both of these loss estimates are being provided net of tax and reinstatement premiums,” the bulletin noted.

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

“Current industry loss estimates for the magnitude 8.8 earthquake in Chile range between $4 billion and $10 billion while the range of industry losses for the European Windstorm Xynthia is $2 billion to $4 billion. The Company expects it will be several months before relative clarity emerges with respect to its ceding companies’ underlying losses from these two events and as new information emerges these estimates may need to be adjusted.”

Chairman and CEO Joseph V. Taranto commented: “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.”

Source: Everest Re Group – www.everestre.com