DCG IRIS Limited Event Report: Eathquake (0662E)

TIDMIRIS

RNS Number : 0662E

DCG IRIS Limited

04 April 2014

DCG IRIS LIMITED

Event Report: Earthquake

The Company today received the following report from Credit Suisse AG ('Credit Suisse'), the investment manager of CS IRIS Low Volatility Plus Fund Limited (the 'Master Fund'), in which the Company invests substantially all of its assets.

Opinions expressed in the report are those of Credit Suisse AG.

"A magnitude 8.2 earthquake occurred off the coast of Northern Chile on April 1, 2014 at 6.46pm local time. The epicentre was located 95km (59 miles) northwest of Iquique (Chile) at a depth of 20.1km (12.5 miles). A tsunami warning was issued along the Northern Chilean and Southern Peruvian coasts and waves reaching 2.5 meters later flooded low-lying areas of Iquique. Strong aftershocks, including a magnitude 7.6 aftershock late on April 2, are still affecting the region.

Initial reports show damage to infrastructure and property with several highways blocked by rockslides and the airport control tower in Iquique damaged. The tsunami has also flooded a clinic and bus terminal in Iquique. At least five people were killed. A large blaze ignited in Central Iquique and electricity and water supply are disrupted. Iquique is a key port, close to Chile's main copper mines, but mining did not appear significantly interrupted.

Along the Peru-Chile trench, which runs along most of Chile's Northern and Central coastline, the Nazca plate is being subducted beneath the South American plate. This trench has produced some of the largest earthquakes in the world including the magnitude 9.5 earthquake in 1960, the strongest earthquake ever recorded. In February 2010, the magnitude 8.8 "Bio Bio" earthquake and the following tsunami killed several hundred people and caused $8 billion in insured losses.

Chile has a relatively high level of insurance coverage compared to other countries in South America. A large share of the insurance values is ceded to the international reinsurance market due to strict regulatory requirements and limited domestic risk appetite. The majority of commercial values are insured against earthquakes, but more than half of these assets are concentrated around the areas of Santiago and Valparaiso which were not affected by the recent earthquake. Given the country's long history of destructive earthquakes, strict building codes are enforced.

Insurance losses from the recent earthquake will be significantly lower compared to the 2010 quake as the recent quake was less severe and the epicentre was located far off the centres with high insurance values in Santiago and Valparaiso. Based on a preliminary analysis, with the information available shortly after the event, insurance losses will likely end up below $1 billion.

The CS IRIS Low Volatility Plus Fund has some smaller exposures to earthquake risk in Chile but we do not expect an impact on fund performance at the currently estimated industry loss level."

For further information please contact:

Dexion Capital (Guernsey) Limited

+44 (0) 1481 743940

Christopher Copperwaite

Dexion Capital plc

+44 (0) 20 7832 0900

Robert Peel

Media Enquiries:

Anthony Payne and Max Hilton

Peregrine Communications

Tel (Direct): +44 20 3178 6869 / +44 20 3178 6873

This information is provided by RNS