NU Online News Service, March 19, 12:55 p.m.EDT

Sixteen global reinsurers have reported approximately $3.5billion in estimated pre-tax net losses so far from the Chileanearthquake and European Windstorm Xynthia, according to a Moody'sInvestor Services update.

In its update on Reinsurers' catastrophe losses from the twoevents, Moody's said these losses are expected to be lower on anafter-tax basis, likely in the range of $2.8 billion to $3billion.

Moody's noted that catastrophe modeling firm estimates for thetotal insured losses for the Chilean earthquake--thefifth-strongest ever recorded--have ranged from $2 billion to $8billion "reflecting the significant uncertainties associated withan earthquake of such intensity, including ultimate businessinterruption losses which are influenced by damage to power andtransportation infrastructure."

Estimates by reinsurers, Moody's said, typically range from $4billion to $8 billion, with one firm, PartnerRe, using an initialinsured loss estimate range of $6 billion to $10 billion.

Aon Benfield, it its own released update, said it believes theinsured losses from the Chile earthquake will not affect global orregional earthquake rates unless the losses grow materially by afactor of three times the current estimates. "Although it is asignificant loss for the Chilean market, we do not foresee animpact to primary pricing and reinsurance pricing outside ofChile," Aon Benfield said. "This will demonstrate that, once again,reinsurance has functioned as designed, providing excellent risktransfer to insurers in a robust and deep market."

For Windstorm Xynthia, Moody's said catastrophe modeling firmsestimate losses in the $1.4 billion to $4.2 billion range.Reinsurers, meanwhile, estimate losses between $2 billion and $4billion, Moody's said.

Regarding both events, James Eck, vice president, senioranalyst, Moody's said, "Global reinsurers are expected to bear ameaningful portion of ultimate insured losses from these eventsthrough both quota-share and catastrophe excess of loss reinsurancetreaties with primary insurance company cedants."

But Moody's added, "In general, the losses are manageable from acapital perspective, with pre-tax losses...for the events rangingfrom about 1 percent of 2009 fourth quarter shareholders' equity onthe low end to about 8 percent of equity on the high end, with anaverage of 3 percent."