European windstorm Xynthia adds a further £25m

Bermuda-based reinsurer Everest Re estimates its exposure to the Chile earthquake is $225m and claims from the European windstorm Xynthia to be approximately $25m.

Both of these loss estimates are net of tax and reinstatement premiums.

It said current industry loss estimates for the magnitude 8.8 earthquake in Chile range between $4bn and $10bn while the range of industry losses for the European Windstorm Xynthia is $2bn to $4bn.

In the business of risk

It will be several months before it knows its ceding companies’ underlying losses from both events. It warned its estimates may need to be adjusted.

Joseph Taranto, chairman and chief executive officer said: “We are extending our full support to our ceding company clients as they deal with the devastation caused by these events.

“Ours is a business of risk and we have ample capacity to absorb these losses. As such we are prepared to handle these claims in an effective and efficient manner.”