This week, reinsurers such as Everest Re Group Ltd. (RE) and PartnerRe Ltd. (PRE) have provided their preliminary loss estimates from the earthquake in Chile and the European Windstorm Xynthia.
Yesterday, Everest Re announced that it expects to incur $225 million of losses for the earthquake in Chile. The 8.8 magnitude earthquake that occurred off the coast of the Maule Region of Chile on Feb 27 has left over 497 fatal victims and hundreds missing. Current industry loss estimates for this earthquake range between $4 billion and $10 billion.
Additionally, the company announced that it estimates its loss for expected claims from the European Windstorm Xynthia to be around $25 million. Industry losses for the storm are between $2 billion and $4 billion.
Xynthia, the violent European windstorm, crossed Western Europe on Feb 26–28. Several places were flooded and a seawall was breached during the violent storm in France. Around 63 people died throughout Europe including 52 in France alone. Germany, Spain, Portugal and Belgium also felt the brunt.
Everest Re’s loss estimates are net of tax and reinstatement premiums. The company said that it is too early to get a clear picture of its customers’ underlying losses from the two events, and said estimates may change with more information.
This Monday, PartnerRe also provided the initial estimates of expected claims from the two catastrophes. The company expects initial claims related to the earthquake in Chile to be around $220 million to $320 million on a pretax basis. Claims relating to Windstorm Xynthia are expected to be between $40-$70 million pre-tax. PartnerRe’s loss estimates are net of reinstatement premium and retrocession.
Shares of Everest Re closed at $82.64, up 10 cents or 0.12% in Wednesday’s regular session on the New York Stock Exchange. In the after-market session, the shares were down a cent only. PartnerRe shares closed at $78.25, up 82 cents or 1.06% in Wednesday’s regular session.
Read the full analyst report on “RE”
Read the full analyst report on “PRE”
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