Zurich Estimates Chile Earthquake-related Losses at $200 Million

Zurich Financial Services announced that, based on preliminary estimates, it expects aggregate claims payments related to the earthquake in Chile of approximately $200 million before tax.

Zurich added that the estimate is “net of reinsurance recoverable and includes reinsurance reinstatement premiums.” The charges will be recorded in the three months results 2010, which are due to be released on May 6, 2010.

The earthquake hit Chile on February 27, 2010, affecting large areas including Santiago de Chile and Concepción, two of the three largest cities of the country.

Zurich also indicated that, “while the amount represents our current best estimate of the ultimate cost for the event, the nature of many of the losses and the extended remediation period to complete repairs means that uncertainty as to the final cost remains.”

Zurich also pointed out that it “was among the first companies to make initial claims payments.” In addition the company’s bulletin indicated that the Chilean Insurance Association, Asociación de Aseguradores de Chile, announced that the insurance industry “had released $18.5 million in claims payments by March 24. The payments made by Zurich in this period would therefore correspond to over 90 percent of the reported industry-wide early claims payments.”

Source: Zurich