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Chile Quake Cost 8 Billion

Chile Quake Cost 8 Billion – QBE Insurance has warned industry-wide payouts linked to last month’s devastating Chilean earthquake could exceed US$8 billion.

Speaking to investors in London QBE chief executive Frank O’Halloran warned costs of this size would probably trigger a series of price rises across the reinsurance industry which is expected to shoulder the bulk of the losses.

Prior to the earthquake, the pricing outlook for reinsurance – which provides commercial insurers cover for major catastrophe losses – had expected to be flat during 2010.

The magnitude 8.8 quake on February 27 caused widespread damage particularly to the country’s central-south regions. The country has also experienced major aftershocks almost daily, hindering reconstruction efforts.

In a presentation to a Citigroup conference, Mr O’Halloran also said QBE is examining acquisition opportunities which could boost premium growth by as much as $2.5 billion next year.

While not specific, he said any acquisitions would be funded by existing excess capital and debt.

Chile Quake Cost 8 Billion

Tags: Acquisition Opportunities, Acquisitions, Aftershocks, Catastrophe Losses, Chief Executive, Chile, Chilean Earthquake, Citigroup, Commercial Insurers, Frank O, Halloran, Insurance, Investors, Magnitude, Qbe Insurance, Quake, Reconstruction Efforts, Reinsurance Industry, S Central, South Regions
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