Reinsurance alone could cost Bermuda insurer $120m
Bermuda insurer and reinsurer XL Capital said preliminary loss estimates for the Chilean Earthquake, pretax and net of reinsurance and reinstatement premium, range from $140m to $205m.
It said $75m to $85m is attributable to the insurance segment and $65m to $120m to the reinsurance segment.
XL’s preliminary loss estimates related to windstorm Xynthia, pretax and net of reinsurance and reinstatement premium, range from approximately $20m million to $25m, almost exclusively in reinsurance.
The Company’s estimates correspond to expected insured market losses in the range of $6bn to $8bn for the earthquake in Chile and $1.5bn to $3bn for Windstorm Xynthia, XL said.
XL’s chief executive officer, Mike McGavick, said: “Based on our early reviews of losses on an industry and regional basis, we believe our estimated loss exposures demonstrate the effectiveness of the underwriting processes and risk management culture we have built at XL.
“In particular, we have prudently managed our net retentions across both the insurance and reinsurance segments.”