Insurer to pay out for China port explosion and Chilean earthquake

Tianjin explosions

Global (re)insurer XL is expecting a $130m (£84m) claims bill from recent catastrophes, including the Chinese port explosion in August and Chilean earthquake in the third quarter.

The company estimates that the Tianjin port explosion in China will cost it $100m in total, of which 30% is attributable to its insurance division and 70% to its reinsurance division.

The remaining $30m is for natural catastrophes in the third quarter, including the Chilean earthquake and higher-than-expected claims from events in previous quarters, mainly the 2015 US winter storms.

Most of this is attributable to XL’s reinsurance division.

The company warned that actual losses may differ materially from these initial estimates.