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ZURICH (Bloomberg)—The Deepwater Horizon oil rig explosion in the Gulf of Mexico could result in insured losses of as much as $6 billion, according to Fitch Ratings Ltd.
The explosion was “a material event for the reinsurance sector,” Chris Waterman, a managing director with Fitch, said Wednesday during a presentation in Zurich.
Even though BP P.L.C., which didn't buy insurance, will cover the majority of expenses linked to the cleanup, the disaster may cost insurers between $4 billion and $6 billion, Mr. Waterman said. The total economic loss is $35 billion, he said.
Swiss Reinsurance Co. Ltd., the world's second-largest reinsurer, estimated insured losses in June to be as much as $3.5 billion, making it the biggest man-made insurance loss since the Sept. 11, 2001, terrorist attacks in New York. Insurers are charging 505 more for policies covering oil rigs after the explosion in April triggered the worst spill in U.S. history, Moody's Investors Service said on June 3.
Copyright 2010 Bloomberg
Editor's note: An earlier version of this story incorrectly reported the insurance coverage that Japan's Mitsui had. This corrected version of the story reflects the change in the sixth paragraph.