Chilean Earthquake Update

RNS Number : 1642J

Catlin Group Limited

25 March 2010

 



CATLIN ESTIMATES FINANCIAL IMPACT
OF CHILEAN EARTHQUAKE AND WINDSTORM XYNTHIA

HAMILTON, Bermuda - Catlin Group Limited ('CGL': London Stock Exchange), the international specialty property/casualty insurer and reinsurer, today announces initial estimates of the financial impact of the Chilean earthquake and Windstorm Xynthia.

Current estimates of the insured damage caused by the Chilean earthquake, which occurred on
27 February, still vary widely and contain a considerable degree of uncertainty. It will be many months until claims arising from this catastrophe can be estimated with any precision.

However, based on a market loss estimate of US$6 billion, Catlin currently estimates that its exposure to the Chilean earthquake amounts to approximately US$140 million, net of reinsurance and reinstatements. Approximately two-thirds of this exposure arises from the international property treaty reinsurance portfolio written in both London and Bermuda, whilst the remainder arises from various classes of facultative business.

Whilst no reinsurance recoveries are anticipated with regard to the property treaty reinsurance portfolio, Catlin will benefit from recoveries from quota share reinsurance covering some facultative property classes. The losses arising from the property treaty reinsurance portfolio will significantly reduce the aggregate retention relating to the Group's catastrophe reinsurance protection. The full limits of the Group's reinsurance protection are still in place and available to respond to any future events.

Catlin also estimates its exposure to Windstorm Xynthia, which caused damage to Western Europe on 27-28 February, will amount to less than US$10 million.

Catlin's estimates for losses from both events are based on information obtained to date from brokers and clients, a comprehensive review of direct insurance and reinsurance contracts, and information derived from catastrophe modelling analysis.

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For more information contact:

Media Relations:
James Burcke, Head of Communications, London	Tel: Mobile: E-mail:	[phone] [phone] [e-mail]
Liz Morley, Maitland	Tel: E-mail:	[phone] [e-mail]
Investor Relations:
William Spurgin, Head of Investor Relations, London	Tel: Mobile: E-mail:	[phone] [phone] [e-mail]

Notes to editors:

1.   Catlin Group Limited, headquartered in Bermuda, is an international specialist property/casualty insurer and reinsurer writing more than 30 classes of business worldwide through six underwriting hubs. Gross premiums written in 2009 amounted to more than US$3.7 billion.

2.   Catlin shares are traded on the London Stock Exchange (ticker symbol: CGL). More information about Catlin can be found at catlin.com.

3.   Catlin has established operating hubs in London, Bermuda, the United States, the Asia-Pacific region, Europe and Canada.  Through these hubs, Catlin works closely with policyholders and their brokers.  The hubs also provide Catlin with product and geographic diversity. Altogether, Catlin operates 47 offices in 20 countries.

4.   Catlin's underwriting units are rated 'A' by A.M. Best and Standard & Poor's.

5.   Catlin is the title sponsor of the Catlin Arctic Survey, a unique collaboration between polar explorers and research scientists to improve society's knowledge of potential environmental changes.  Catlin Arctic Survey 2010, which began in March, will focus on how rising carbon emissions may affect oceans and sea life.  More information is available at CatlinArcticSurvey.com.

 

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