The Bermuda-based Catlin Group Limited has given preliminary estimates of the financial impact of the Chilean earthquake – around $140 million – and Windstorm Xynthia – less than $10 million.
Catlin noted that the current estimates of the insured damage caused by the Chilean earthquake, which occurred on February 27, “still vary widely and contain a considerable degree of uncertainty. It will be many months until claims arising from this catastrophe can be estimated with any precision.”
Catlin said it has therefore based its loss estimate, which is “net of reinsurance and reinstatements,” on a market loss estimate of $6 billion. “Approximately two-thirds of this exposure arises from the international property treaty reinsurance portfolio written in both London and Bermuda, whilst the remainder arises from various classes of facultative business,” said the bulletin.
Catlin added that it doesn’t expect any reinsurance recoveries with regard to the property treaty reinsurance portfolio, but said it would “benefit from recoveries from quota share reinsurance covering some facultative property classes.
“The losses arising from the property treaty reinsurance portfolio will significantly reduce the aggregate retention relating to the Group’s catastrophe reinsurance protection. The full limits of the Group’s reinsurance protection are still in place and available to respond to any future events.”
Catlin explained that its “estimates for losses from both events are based on information obtained to date from brokers and clients, a comprehensive review of direct insurance and reinsurance contracts, and information derived from catastrophe modeling analysis.
Source: Catlin group – www.catlin.com
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