If insured losses rise, claims could equal its capacity

Amlin has warned that if insured losses for the Chile earthquake hit $10bn the catastrophe reinsurance claims would rise by $11m wiping out all of Amlin`s inwards catastrophe excess of loss reinsurance capacity.

Amlin estimates its losses based on an insured market loss up to $7.7bn, to be between $142m and $165m.

Amlin`s reinsurance loss to the Chilean earthquake is mostly retained without anticipated recoveries from its retrocessional reinsurance programme, it said.

Further catastrophes

Amlin said the structure of its retrocessional programme means it would recover more from another major event and significantly more from a third major event.

Amlin does not expect material claims from Windstorm Xynthia.