NU Online News Service, March 10, 11:39 a.m.EST

Swiss Re estimated that total insurance industry losses from theFeb. 27 Chile earthquake could reach $7 billion and said its ownloss from the event could possibly hit $500 million.

Meanwhile, Munich Re offered a matching estimate for theindustry quake loss and estimated its own quake loss at EUR400million ($545 million). The two companies' combined winter stormXynthia loss estimates totaled $236 million.

The Swiss Re and Munich Re estimates putting the industry lossbetween $4 billion and $7 billion are lower than that of PartnerReLtd., which said yesterday the number could go as high as $10billion and its own losses might be between $220 million and $320million.

Swiss Re in addition said it expects its loss for the winterstorm Xynthia that hit Western Europe on February 26-28 to bearound $100 million (EUR73 million). Munich Re said it expected itsstorm loss to be EUR100 million ($136 million).

The storm caused industry losses in the range of $2-to-$4billion, according to Bermuda-based PartnerRe, which said its ownclaims relating to Xynthia will be $40-to-$70 million.

Meanwhile, Moody's Investors Service put out a report sayingXynthia's impact would be significant for French insurers and muchless so for reinsurers.

The firm noted modeling estimates put the storm damage in Franceat EUR1 billion ($1.36 billion) to EUR500 million ($680 million)while the French association of insurance companies has indicatedthat the total insured cost of Xynthia may be higher than EUR1.2billion ($1.63 billion). Risk Management Solutions modeling firm inNewark, Calif. estimated the industry loss between EUR1billion($1.36 billion) and EUR2 billion($2.7 billion).

Moody's noted these were early figures that could be revisedupward. The firm said France's damage was high because winds andhigh tides caused "devastating floods" on the French Atlanticcoast, with potentially high costs due to serious property damageand sizable business interruption claims. It noted wind-inducedclaims and floods-induced claims are covered under propertypolicies in France.

However, Moody's noted that primary insurers will benefit fromthe protective reinsurance scheme provided by the FrenchState-owned Caisse Centrale de R?assurance (CCR). This reinsurancemechanism coupled with coverage against climatic events purchasedwith traditional reinsurers will limit the net cost for theinsurance industry, said Moody's.

For reinsurers, Moody's said the storm impact should be"limited" given that 50 percent of the claims related to floodswill be picked up by CCR.

And the company said the wind-induced claims combined with theflood-induced claims not borne by CCR may not significantly exceedprimary insurers' retention.

But the company cautioned that reinsurers will now be moreexposed to future climatic events in France, especially storms, asthe costs of such additional events may now be more largely borneby the traditional reinsurance industry.