PartnerRe Gives Loss Estimates for Chile Quake, Windstorm Xynthia

Bermuda-based PartnerRe Ltd has issued preliminary estimates of expected claims from the earthquake in Chile and European Windstorm Xynthia.

Total insured industry losses from the M8.8 earthquake in Chile, which hit on February 27, 2010, “will be in the range of approximately $6-$10 billion,” PartnerRe indicated. The reinsurer anticipates that its claims will be “between $220-$320 million pre-tax and are expected to be contained primarily within the Global Property & Casualty, Catastrophe and PARIS RE sub-segments.”

The bulletin added that these loss estimates are “net of reinstatement premium and retrocession. It is based on a top down analysis as well as on model output, the assessment of individual treaties and client data, and is consistent with the Company’s market position in the region. This estimate is preliminary, as there is limited actual loss data. As additional information is received particularly relating to potential structural damage in the capital of Santiago, we will update this estimate.”

European Windstorm Xynthia, which struck Europe over the weekend of February 27-28, is “estimated to have caused industry losses in the range of $2-$4 billion,” partner Re said. The storm traveled up the west coast of Europe and inflicted damage in Portugal, Spain, France, Belgium, the Netherlands, Luxembourg, and Germany, with France being the hardest hit.

PartnerRe said it expects its “claims relating to Windstorm Xynthia will be between $40-$70 million pre-tax and are expected to be contained primarily within the Catastrophe and PARIS RE sub-segments. This estimate is net of reinstatement premium and retrocession.

Source: PartnerRe – www.partnerre.com