XL Capital Ltd’s preliminary net loss estimates for the earthquake in Chile and European Windstorm Xynthia indicated they will total between $160 and $230 million.
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 said.
“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. It expects these losses to “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,” the bulletin explained.
“These preliminary loss estimates correspond to expected insured market losses in the range of $6 billion to $8 billion for the earthquake in Chile and $1.5 billion to $3 billion for Windstorm Xynthia. 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.”
CEO 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.”
Source: XL Capital Ltd – www.xlcapital.com
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