Chaucer predicts £25m catastrophe losses

Lloyd's insurer Chaucer has estimated a combined net loss of £25m from the Chilean earthquake and European Windstorm Xynthia.

In a statement, Chaucer said. "As widely reported, these are major catastrophe events, whose magnitude and complexity make the precise ultimate loss difficult to quantify. We estimate a combined net loss to Syndicate 1084 of approximately £25m. The cost of these losses will be contained within our annual catastrophe loss budget."

The insurer said that Syndicate 1084 has limited exposure to European Windstorm Xynthia.

It added: "Our Chilean exposures arise primarily from our direct and facultative property accounts, for which we have completed a contract-by-contract review and have provided specific provisions against all risks in the affected areas. We do not expect our net losses to increase with any deterioration in the total insured market loss.

"Reinsurance will cover any further deterioration on our direct and facultative property accounts and we have actively avoided Chilean treaty reinsurance programmes due to dissatisfaction with terms and conditions."