Hiscox estimates earthquake costs

16th Mar 2010 07:28

Underwriter Hiscox said it expects a combined net loss of around £100m from the recent Chilean earthquake and windstorm Xynthia which struck France. Hiscox said this is its first estimate of the impact of the Chilean earthquake and Windstorm Xynthia."Loss estimation, particularly around the very severe earthquake in Chile, is still at an early stage so considerable uncertainties exist," the group explained in a company statement. Hiscox does not underwrite a specific Chilean reinsurance programme, but has exposure through its underwriting of global and regional reinsurance and retrocessional programmes, it explained. "Hiscox has no material direct insurance exposure to this event." The insurer said its estimate is within its budgeted losses. It has reinsurance cover remaining for other catastrophes and believes these losses will result in the firming of some reinsurance rates. Current insured market loss estimates for Chile range from $2bn to $10bn, and for Xynthia $2bn to $4bn. "The breadth of these ranges reflect market uncertainties and this could lead to a later revision of Hiscox's estimate," it added.