NU Online News Service, Jan. 12, 12:53 p.m. EST
Three Bermuda-based insurers have chimed in with loss estimates related to flooding in Thailand, adding perspective to what market experts call a $10 billion-plus loss event.
XL Group says is initial loss estimate for the flooding in Thailand—which began last summer but peaked during the 2011 fourth quarter—is between $135 million and $185 million.
About two-third of the estimated losses relate to XL’s insurance segment, the company, which provide insurance and reinsurance, says in a statement.
Two other Bermuda-based providers of insurance and reinsurance, Arch Capital and Validus, gave investors a look at estimated fourth-quarter losses from the event.
Arch puts its estimate of losses between $35 million and $65 million for the fourth quarter.
Validus expects results from the last quarter of 2011 to be affected by about $55.5 million in losses.
Each estimate is net of reinsurance and reinstatement premiums.
Arch says its initial guess at losses is based on a total hit to the insurance industry of $10-to-$20 billion from the flooding. Validus’ total market loss of about $12 billion falls within that range.
The newest estimates add to those already announced around the industry.
Swiss Re says industry losses could come in between $8 billion and $11 billion. The global reinsurer put its own losses at around $600 million.
Aon Benfield, says industry losses could exceed $10 billion, and adds that economic losses could be as high as $45 billion.
Munich Re says it expects its share of losses to be around $666.1 million net before tax.
In addition to coming up with a preliminary loss estimate for Thailand, XL says it has added about $35 million in losses related to U.S. events during the first three quarters in 2011—specifically the tornado activity during the second quarter, as well as windstorms and flooding in the third quarter.
