Estimate of claims from Chilean earthquake and ...
Estimate of claims from Chilean earthquake and Windstorm Xynthia
Amlin Plc
Amlin plc, the specialist international insurer, has assessed the impact of the Chilean earthquake and windstorm Xynthia, both of which occurred over the weekend of 27th /28th February, 2010.
The scale of insured damage arising from these catastrophes, particularly the Chilean earthquake, remains uncertain with current modelling agency insured loss estimates ranging from $2 to $8 billion for the Chilean earthquake and Euro1.5 billion to Euro3.0 billion for windstorm Xynthia.
Amlin does not expect material claims from Windstorm Xynthia.
Amlin is working closely with brokers with a view to determining its anticipated claims from the Chilean earthquake and to delivering an efficient and prompt claims service to its affected clients. However, to date, meaningful claims information has been limited.
Amlin’s exposures to the Chilean earthquake lie mainly in its international property catastrophe account. Other direct and reinsurance accounts have exposure but it is extremely difficult to estimate such claims at this stage. Given the substantial amount of reinsurance cover available for Amlin’s direct insurance accounts, we believe that claims arising as a result of the earthquake will not have a significant effect on our expectations of their performance for this financial year.
For the Chilean earthquake the following loss estimates are based on modelled events provided by AIR, the loss modelling agency, applied to the catastrophe excess of loss reinsurance accounts for Amlin London and Amlin Bermuda. Based on an insured market loss of $3.9 billion to $7.7 billion, Amlin estimates its net catastrophe excess of loss account losses to be between $142 million and $165 million. If the Chilean earthquake insured loss increases to around $10 billion the catastrophe reinsurance claims would increase by $11 million and all of Amlin’s inwards catastrophe excess of loss reinsurance exposures will have been fully exhausted.
Amlin’s reinsurance loss to the Chilean earthquake is mostly retained without anticipated recoveries from its retrocessional reinsurance programme. However, the structure of the programme is such that Amlin would recover more from another major event and significantly more from a third major event.
ENDS
| Enquiries: | Â | Â | ||
| Charles Philipps, Chief Executive, Amlin plc |
 |
0207 746 1000 | ||
| Richard Hextall, Finance Director, Amlin plc | 0207 746 1000 | |||
| Julianne Jessup, Head of Investor Relations, Amlin plc | 0207 746 1961 | |||
| Hannah Bale, Head of Communications, Amlin plc | 0207 746 1118 |
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