Everest Re Group Ltd. has announced a preliminary loss estimate of $225 million for exposure to the earthquake in Chile.

The company also estimates its loss for expected claims from the European Windstorm Xynthia to be approximately $25 million.

Both of these loss estimates are net of tax and reinstatement premiums.

The company's current estimates for these events were based on underwriters' preliminary analyses and judgments, client input and discussion, event modelling and profiling of exposed limits.

Current industry loss estimates for the magnitude 8.8 earthquake in Chile range between $4 billion and $10 billion, while the range of industry losses for Xynthia is from $2 billion to $4 billion.

Everest expects it will be several months before its ceding companies' underlying losses from these two events become clear and the estimates may need to be adjusted as new information becomes available.

"We are extending our full support to our ceding company clients as they deal with the devastation caused by these events," Joseph Taranto, Everest's chairman and CEO.

"Ours is a business of risk and we have ample capacity to absorb these losses. As such we are prepared to handle these claims in an effective and efficient manner."