Energy rates will rise because of BP Gulf of Mexico claims
Chaucer estimate its losses from the Deepwater Horizon oil platform in the Gulf of Mexico will be $25m from Syndicate 1084 with $20m from its direct energy portfolio and $5m from its marine excess of loss account. Its said energy rates were rising as a result of the disaster.
The loss estimate is net of reinsurance and reinstatement premiums receivable and payable.
“We have based our estimated exposures on the exhaustion of all known policy limits of Deepwater Horizon joint venture partner policies for our direct energy portfolio and on an equivalent loss scenario for our marine excess of loss account,” it said.
“Our Energy Division has a leadership position in the international energy market, with plans underway to write gross written premiums in excess of $200m in 2010, and retains significant reinsurance protections for events of this magnitude.
“Energy rates are now hardening in response to this loss, reversing the reductions that took effect in the first quarter of 2010.
Chris White, head of Chaucer's Energy Division said: "A loss the size of Deepwater Horizon, where leading energy companies are operating at the forefront of oil exploration technological boundaries, demands a strong market response with significant rate rises to compensate for the underwriting exposures confronted in these areas."