XL Capital Ltd. last night said it expects it net losses from the Chile earthquake to be between $140 million and $205 million.

The Bermuda-based business insurer added that estimated losses related to the European windstorm Xynthia were between $20 million and $25 million, almost exclusively attributed to XL's reinsurance operation.

XL said that $75 million to $85 million of losses emanating from last month's 8.8-magnitude quake in central Chile were attributable to its insurance segment and $65 million to $120 million to the reinsurance business.

The company's estimates are based on its review of individual treaties and policies expected to be impacted and client data received to date and has taken into account current total insured market loss estimates, both from published sources and the company's internal analysis.

These preliminary loss estimates correspond to expected insured market losses in the range of $6 billion to $8 billion for the earthquake in Chile and $1.5 billion to $3 billion for Windstorm Xynthia.

XL chief executive officer Mike McGavick said: "Our thoughts are with all of those impacted by these recent catastrophic events.

"Based on our early reviews of losses on an industry and regional basis, we believe our estimated loss exposures demonstrate the effectiveness of the underwriting processes and risk management culture we have built at XL.

"In particular, we have prudently managed our net retentions across both the insurance and reinsurance segments."