Claims are ‘well within normal loss provisions’, says Max boss Becker.
Max Capital Group has announced that preliminary estimates of combined claims for the Chilean earthquake of February 7, 2010 and winter storm Xynthia, which crossed Western Europe from February 26 to 28, 2010, range from $10m to $20m, net of reinstatement provisions and retrocessions.
Marty Becker, Chairman and Chief Executive Officer of Max Capital, said: "Our projected claims from the Chilean earthquake and storm Xynthia are well within our normal loss provisions. In addition, in connection with Max's previously announced pending merger with Harbor Point Limited, we believe that the equivalent preliminary estimate, on a pro forma basis after giving effect to the combination, would have been in the range of $30m to $50m, net of reinstatement provisions and retrocessions - also within the normal loss provisions for the pro-forma combined organisation."
Max Capital's and Harbor Point's loss estimates are based on proprietary modelling analysis, the assessment of individual treaties, and data from clients and brokers. Additionally, aftershocks are continuing in Chile with no reports as of yet on the extent of any related damages. Significant changes in these loss estimates may occur.