Hannover Re Sees Major Claim From Cruise Wreck Off Italian Coast
16 January 2012 - 9:09PM
Dow Jones News
Germany's Hannover Re AG (HNR1.XE), one of the five largest
reinsurers worldwide, Monday said it expects a major claim from the
cruise wreck off the Italian coast.
A company spokeswoman said the company now defines a major claim
as a claim of at least EUR10 million, like other peers such as
Munich Re AG (MUV2.XE). Previously, Hannover Re's definition of a
major claim was EUR5 million.
However, it is too early to give an exact estimate for the claim
Hannover Re expects from the event, the spokeswoman said.
She said the claim will be in its marine reinsurance business,
involving the property and casualty damage to the hull of the ship
itself and to the more than 4,000 passengers, including salvaging
costs.
Spokeswomen for Munich Re AG (MUV2.XE), the world's largest
reinsurer by gross premiums, and for Allianz SE (ALV.XE) said it
was too early to give an estimate.
Cruise Costa Concordia, owned by Carnival PLC (CCL.LN), ran
aground off the Italian coast Friday, after striking a rock
formation near a small island off the Tuscany coast. So far, six
people have been reported dead, with a number of passengers still
reported missing.
According to business daily Il Sole 24 Ore, which didn't cite
its sources, companies exposed to the disaster include
Assicurazioni Generali SpA (G.MI) and insurance broker AON Corp.
(AON), which insures Carnival's fleet.
As for protection and indemnity for the crew and passengers, Il
Sole 24 Ore reports that Standard Alliance Insurance PLC has
insured Carnival for nearly $3 billion, adding that the value of
the boat is estimated at EUR450 million.
-By Ulrike Dauer, Dow Jones Newswires; +49 69 29725 500;
ulrike.dauer@dowjones.com