Estimate of £47m based on $6bn insured losses

Brit Insurance says the Chile earthquake will, assuming a total insured loss of $6bn give it a pre-tax net exposure after reinsurance recoveries and reinstatement premiums, of approximately $71m (£47m).

It’s primary exposure arises from International Property Treaty Catastrophe Reinsurance, Property Direct and Marine (Cargo and Onshore Energy).

Brit said that should the market loss reach $10bn its inwards International Property Treaty Catastrophe account will have no additional exposure but its direct account would have a net exposure of $97m (£64m).

The International Property Treaty Catastrophe exposure is not expected to trigger the Group's excess of loss retrocessional coverage, which remains fully in force, Brit said.

Brit does not consider European Windstorm Xynthia to be a major claim for the Group.

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