PEMBROKE, Bermuda—Allied World Assurance Co. Holdings Ltd. said Friday that its initial loss estimate for the Chilean earthquake is between $55 million and $75 million.

Scott Carmilani, president and CEO of Allied World, said in a statement that the reinsurer’s estimated losses are within the company’s “accepted risk tolerances and are in line with our assessments of account risks and aggregate exposures for the areas affected and compared to our models thus far.”

Pembroke, Bermuda-based Allied World said its estimate is before taxes and net of reinsurance, adding that the total is subject to change.

Allied World also said its initial loss estimate for Windstorm Xynthia is approximately $2 million.