NU Online News Service, March 15, 2:39 p.m. EST
Max Capital Group Ltd. is estimating losses for the Chilean earthquake and European Winter Storm Xynthia to range from $10 million to $20 million, net of reinstatement provisions and retrocessions.
W. Marston Becker, chairman and chief executive officer of the Hamilton, Bermuda-based specialty insurer and reinsurer, said the projected losses are "well within our normal loss provisions."
Industry estimates last week put the total projected insured losses for the Chile earthquake between $4 billion and $10 billion, while Xynthia losses were projected to be between $2 billion and $4 billion.
Mr. Becker also offered combined loss projections for Max Capital and Harbor Point Limited, which had previously announced a pending merger.
Mr. Becker said Max Capital believes "the equivalent preliminary estimate, on a pro-forma basis after giving effect to the combination, would have been in the range of $30 million to $50 million, net of reinstatement provisions and retrocessions--also within the normal loss provisions for the pro-forma combined organization."
Max Capital and Harbor Point's loss estimates, Max Capital said, are based on proprietary modeling analysis, the assessment of individual treaties, and data from clients and brokers.
The company noted that aftershocks are continuing in Chile with no reports as of yet on the extent of any related damages. "Significant changes in these loss estimates may occur," Max Capital said.
