Validus Holdings, a provider of reinsurance and insurance services, expects that its losses in the Deepwater Horizon oil platform loss in the Gulf of Mexico would be in the range $38m to $45m. The estimate is based on an industry loss estimate of $1.3bn.
These loss estimates include net of reinstatement premiums, reinsurance, retrocessional and other recoveries.
Reportedly, this loss is well within Validus’ expected large loss load for the quarter and the company has additional reinsurance in place if the ultimate industry loss increases above the current estimate.
The current estimates are based on Validus’ current evaluation of impacted contracts and information provided by customers and intermediaries. Due to the ongoing development of potential pollution claims as well as the preliminary nature of reports and estimates of loss to date, Validus’ actual losses from these events may vary materially from these estimates.