LONDON (Bloomberg) - The sunken Deepwater Horizon oil rig in the Gulf of Mexico will lead to the biggest energy insurance losses in more than 20 years, Catlin Group Ltd. said.

The April 20 explosion that killed 11 workers and triggered a subsea well leak is likely to be the biggest energy market insurance loss since the Piper Alpha oil platform fire in 1998, the Hamilton, Bermuda-based insurer said on Friday in a statement.

Claims from Deepwater Horizon, which was under contract to BP plc. when the blast occurred, may reach $1.6 billion, according to JPMorgan Chase & Co. analyst Michael Huttner.

Catlin's claims from the disaster will be about $40 million, while Lloyd's of London insurer Chaucer Holdings Plc said today it expects net losses of $25 million.