Preliminary Loss Estimates Announced for Chilean Quake

Bermuda-based Everest Re Group has announced its preliminary loss estimate for exposures relating to the earthquake in Chile and the recent European windstorm known as Xynthia. The total? Earthquake: $225 million, Xynthia: $25 million. Representatives of the company told the press that the “…currrent estimates for these events are based on underwriters’ preliminary analyses and judgments, client input and discussion, event modeling and profiling of exposed limits.”

The company spokesperson elaborated, explaining, “Current industry loss estimates for the magnitude 8.8 earthquake in Chile range between $4 billion and $10 billion while the range of industry losses for the European Windstorm Xynthia is $2 billion to $4 billion. The Company expects it will be several months before relative clarity emerges with respect to its ceding companies’ underlying losses from these two events and as new information emerges these estimates may need to be adjusted.”

Joseph V. Taranto, Chairman and CEO Of Everest also commented, telling the press in a statement released yesterday: “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.”

Meanwhile, insurance carriers with most of their policyholders here in the United States continue to urge consumers, especially those in known active fault areas, to purchase earthquake insurance sooner rather than later.