Hiscox Ltd. announced from its Bermuda headquarters that, from initial estimates, based on an insured market loss of US$8 billion for the Chilean earthquake, and US$3 billion for windstorm Xynthia, it estimates a combined net loss of approximately £100 million [$151 million].
The loss estimates, “particularly around the very severe earthquake in Chile,” are still at an early stage,” said the bulletin. Therefore, “considerable uncertainties exist.”
Hiscox also noted that, although it has “no material direct insurance exposure to this event, as it “underwrites no specific Chilean reinsurance programs,” it does have “exposure through its underwriting of global and regional reinsurance and retrocessional programs.”
Current insured market loss estimates for Chile range from US$2 billion to US$10 billion, and for Xynthia US$2 billion to US$4 billion. “The breadth of these ranges reflect market uncertainties and this could lead to a later revision of Hiscox’s estimate,” said the bulletin.
“This estimate is within budgeted losses for such events and the Group has reinsurance cover remaining for other catastrophes. Hiscox believes these losses will result in the firming of some reinsurance rates.”
Source: Hiscox Ltd: www.hiscox.com
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