Editor's Note: This article originally appeared in National Underwriter, P&C.
Lloyd's announced that its estimates to-date for the net claims from the Deepwater Horizon explosion in the Gulf of Mexico are between $300 million and $600 million and that estimates of its net claims before tax from the earthquake in Chile are about $1.4 billion.
As additional information emerges, Lloyd's said actual ultimate net claims from both events may vary from the preliminary estimate.
In a press release dated May 26, Lloyd's said that its preliminary estimate of claims from the two events is consistent with the upper range of industry insured loss estimates and draws on market share analysis, the application of modeling techniques, and a review of contracts in force as well as early estimates from each syndicate.
Lloyd's added that it is "difficult at this time to provide an accurate estimate of the financial impact of these events on the overall market given that both are still evolving."
There will be a negligible impact on Lloyd's capital and no Central Fund exposure from the events, either individually or collectively, Lloyd's said.
Chief Executive Richard Ward said in a statement, "Clearly these events have had a significant impact on both Chilean and U.S. coastal communities, as well as a severe environmental cost in the case of the oil spill off Louisiana. Our priority remains to assess and settle valid claims as quickly as possible in both regions and helping to rebuild."
He added that the figures "are our estimates of the market's total exposure. The claims relating to the Chilean Earthquake will evolve for some time, while the event in the Gulf of Mexico is still developing."
