Bermuda-based re/insurer Allied World Assurance Company Holdings Ltd. said it expects losses from last month's earthquake in Chile to range between $55 million and $75 million.

The company also gave an initial net loss estimate of $2 million relating to European windstorm Xynthia.

Both estimates are pre-tax and net of reinsurance.

President and chief executive officer Scott Carmilani said: "Allied World's estimated losses from the catastrophe events that have taken place in the first quarter are well within our 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.

"Given the size and magnitude of the earthquake in Chile, we remain focused on helping our customers directly affected with claims assessments and claims support during the recovery and engineering efforts to get back to business."

Allied World stressed that actual losses from these events may vary materially from the current estimates.