Swiss Re in $500m Chile costs

Swiss Re estimates its loss from the Chile earthquake to be $500m from a total insurance loss of $4.0bn to $7.0bn. Its losses from European winter storm Xynthia will be approximately $100m.

“In Chile, it is common practice for owners of mortgaged residential property, commercial and industrial property to buy earthquake insurance from local and global private insurance companies, Swiss Re said.

“Accordingly, this latest earthquake will lead to significant insurance claims for property damage and business interruption which are designed to facilitate a swift economic recovery.

It said: “The uncertainties in estimating losses from such an event are significant, and this preliminary estimate may need to be adjusted as new information becomes available.”

Xynthia

Swiss Re said: “Coverage against wind and flood damage is standard practice in the countries affected by Xynthia. These covers are provided by state-run cover schemes (CatNat in France, Concorcio in Spain) and by the private insurance sector.

Based on preliminary estimates, Swiss Re expects its claims for winter storm Xynthia, net of the benefits of retrocession, to be approximately $100m before tax.