Reinsurer PartnerRe said that it estimates insured losses relating to the recent explosion of the Deepwater Horizon drilling platform in the Gulf of Mexico, which occurred on April 20, 2010, have the potential to exceed $1bn.
The company said that the platform sank approximately 50 miles Southeast of Venice, Louisiana in the Macondo prospect area of the Gulf of Mexico.
However, the ultimate insured loss for the event is unclear given the multiple parties involved and the on-going situation regarding control of the oil spill, PartnerRe said.
The company expects its second quarter 2010 results to include claims relating to the explosion in the range of $60-$70m. These losses are expected to be contained primarily within the global specialty and PARIS RE sub-segments.
PartnerRe’s loss estimate is pre-tax, net of reinstatement premiums, assumed and ceded, and net of retrocession.