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Oil rig loss to be contained in Q2 earnings: S&P

24 May 2010

The reinsurance and insurance losses from the Gulf of Mexico oil spill are expected to be minimal, according to rating agency Standard & Poor's.

Read more: bluewater horizon

The reinsurance and insurance losses from the Gulf of Mexico oil spill are expected to be minimal, according to rating agency Standard & Poor's (S&P).

The Deepwater Horizon oil rig explosion in the Gulf of Mexico in April is likely to become one of the largest oil spills of all time. The early economic damage estimate from this man-made disaster has already reached a few billion dollars, but S&P expects insured losses to be less in comparison.

In addition, Standard & Poor's expects the insured losses from the spill to be spread among multiple reinsurers and insureres in the London, Bermuda, and US markets. Lloyd's of London...


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Poll

Catastrophe bond issuance was $4.3bn in 2011. How much new issuance will there be in 2012?

Less than $3bn
0%
$3bn-$4bn
50%
$4bn-$5bn
25%
$5bn-$6bn
12%
$6bn-$7bn
12%
More than $7bn
0%

Quote

If last year was the year of the cat, then this year could be the year of the debt crisis.

Mike Van Slooten, head of international market analysis at Aon Benfield