BP/Transocean Deepwater Horizon spill could cost $600m
Lloyd's estimates its net claims before tax from the Chile earthquake to be $1.4bn and net claims from the BP/Transocean Deepwater Horizon explosion in the Gulf of Mexico to be between $300m and $600m.
Lloyd's said its estimate were consistent with the upper range of industry insured loss estimates and draws on market share analysis, the application of modelling techniques, and a review of contracts in force as well as early estimates from each syndicate.
“It is difficult at this time to provide an accurate estimate of the financial impact of these events on the overall market given that both are still evolving,” it said.
No Central Fund impact
There will be a negligible impact on Lloyd's capital and no Central Fund exposure from the events, either individually or collectively, it said.
Chief executive Richard Ward said: "Clearly these events have had a significant impact on both Chilean and US-coastal communities, as well as a severe environmental cost in the case of the oil spill off Louisiana.
“Our priority remains to assess and settle valid claims as quickly as possible in both regions and helping to rebuild.
"These figures are our estimates of the market's total exposure. The claims relating to the Chilean Earthquake will evolve for some time, while the event in the Gulf of Mexico is still developing."
