Validus Estimates Oil Platform Disaster Losses in $38-$45 Million Range

Bermuda-based Validus Holdings, Ltd. announced a preliminary estimate of losses from the Deepwater Horizon oil platform loss in the Gulf of Mexico to be in the range of $38 million to $45 million, based on an industry loss estimate of $1.3 billion. The loss estimates are net of reinstatement premiums, reinsurance, retrocessional and other recoveries.

“This loss is well within Validus’ expected large loss load for the quarter and the company has additional reinsurance in place if the ultimate industry loss increases above the current estimate,” said the bulletin.

They are “based on Validus’ current evaluation of impacted contracts and information provided by customers and intermediaries,” the announcement continued; “Due to the ongoing development of potential pollution claims as well as the preliminary nature of reports and estimates of loss to date, Validus’ actual losses from these events may vary materially from these estimates.”

Source: Validus Holdings

Topics Profit Loss Energy Oil Gas