Reinsurer Validus Holdings has estimated that its losses related to the sunken oil rig in the Gulf of Mexico will be between $38 million and $45 million.

Validus, which said on Friday that its estimate was based on an industry loss of around $1.3 billion, is the latest Island reinsurer to release details of its estimated exposure to the rig explosion.

PartnerRe estimated a loss of between $60 million and $70 million on Thursday, while Montpelier Re Holdings Ltd.'s chief underwriting officer David Sinnott revealed in a conference call that his company may have costs tied to the explosion of as much as $20 million. The reinsurer holds contracts for the rig that may trigger two payments of $10 million each, the company said in a statement.

"As the size of the industry loss gets bigger, it would be more likely for us to pick up exposure," Montpelier's chief executive officer Christopher Harris said in the call.

Bermuda-based Axis Capital, Lancashire Holdings, Hiscox and Catlin Group, have also confirmed some exposure to the disaster.

Axis chief executive officer John Charman confirmed in a conference call with analysts last week that his company writes a $150 million layer of liability coverage in excess of $50 million for Transocean.

Mr. Charman said during the call that his company's exposure is heavily reinsured and Axis's net retention is around $8 million.

The disaster comes hard on the heels of an expensive first quarter for reinsurers. According to preliminary estimates from Bermuda companies, catstrophes including the Chile earthquake and European windstorm Xynthia, likely cost the local market more than $2.5 billion.

The explosion and sinking last week of the Deepwater Horizon drilling rig left 11 of the 126-member crew dead. The oil spill, which originated about 130 miles southeast of New Orleans, is 600 miles in circumference and is leaking about 5,000 barrels a day, according to the US Coast Guard.

The well belongs to BP, which is liable for the costs of the spill. BP had leased the rig from Transocean Ltd.

The OIL Group of Companies - Bermuda-based mutual insurers for the energy industry - has no exposure to the two main parties involved, the company said on Friday.

Neither BP nor Transocean are members of Oil Insurance Ltd. (OIL) or Oil Casualty Insurance Ltd. (OCIL).

OCIL's chief operating officer Jerry Rivers told The Royal Gazette: "One of our members has a financial interest in the project, but not an operating interest, so there may be a limited exposure.

"But until we review the circumstances of the incident and determine what is in the contracts we can't say any more."

Estimates of the likely insured losses from the explosion and spill, which has been described by the administration of US President Barack Obama as an event "of national significance", vary.

While Validus has based its estimates on industry losses of $1.3 billion, PartnerRe's figure was $1 billion and US reinsurer Transatlantic, which has estimated the event will cost it less than $15 million, has put the likely industry loss at $1.5 billion.

JPMorgan Chase & Co. analyst Michael Huttner last week estimated the insurance-industry cost would be $1.6 billion.

Two German reinsurers expect significant losses from the event. Munich Re said it could pay up to $100 million for the accident, but warned that it is too early to calculate the toll. Meanwhile Hannover Re has estimated losses of around $53 million.

Oil rig accidents bring a patchwork of regular insurance coverage, reinsurance, and self-insurance mechanisms, said Claire Wilkinson at the US Insurance Information Institute, the industry's trade group.

"The great unknown here will be the environmental pollution liability issue. These kinds of events take many years to unfold," she told Reuters. "You could draw a parallel with Exxon Valdez - 20 years later, the final costs are still unknown."