The Deepwater Horizon oil rig exploded on April 20, and sank into the Gulf of Mexico on April 22 The drilling rig Deepwater Horizon that sank in the Gulf of Mexico last week after an explosion will result in a major loss for Hannover Re, the company announced today.

A release posted on Hannover Re's website said, "On the basis of a conservative evaluation of the current -- still vague -- information, [Hannover Re] is expecting a net loss of approximately EUR 40 million."

According to today's currency exchange rates, EUR 40 million is equivalent to US$53 million.

Even with this catastrophe, the company's CEO Ulrich Wallin said that Hannover would "remain considerably below our major loss expectancy for the second quarter."

A report from Guy Carpenter yesterday said that QBE's syndicate 1036 and Munich Re also were involved in insuring the rig, with QBE reportedly serving as lead insurer. Neither company has released loss figures at this time.

As the operator of the rig, oil giant BP is responsible for the clean-up, according to Guy Carpenter's report. BP said that it expects its self-insurance and captive insurance to cover costs associated with the clean-up effort.

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Oil Rig a &quot;Major Loss&quot; for Hannover Re

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Oil Rig a "Major Loss" for Hannover Re