AIG CEO Maurice “Hank” Greenberg followed up his statement on Wednesday in which he said that “These attacks are an enormous human and national tragedy,” with the reassurance that “We remain intensely focused on providing immediate assistance and relief to those who have suffered losses relating to this enormous national tragedy. Our crisis teams are in place, functioning on a twenty-four hour basis, and they are prepared to process claims.”
The announcement from AIG set preliminary pre-tax loss estimates from the attacks at approximately $500 million.
In Germany Allianz AG, the parent of Fireman’s Fund, issued a brief statement estimating that its losses from the disaster could be as high as €700 million ($ 637 million), but that no definitive amount could yet be determined. It assured policyholders and investors that it had sufficient means to cope with a catastrophe of this size.
Bermuda’s XL Capital estimated that the attack on the World Trade Center would result in claims between $600 and $700 million, mainly from aviation coverage, properly damage and business interruption, and would have a significant impact on its 3rd quarter results.
The company also announced that it was postponing the issuance of $500 million in senior notes, which were due to be issued Friday as a result of the closing of New York’s financial markets. CEO Brian O’Hara assured XL’s customers that the company had sufficient balance sheet strength and liquidity to “pay claims on a timely basis.”
Also from Bermuda Renaissance Re Chairman and CEO James N. Stanard issued a statement that, “We extend our sympathy to all who were affected by this week’s unprecedented tragedy.” The company also said that its exposure to aviation, workers compensation, life and liability reinsurance through commercial accounts in New York was minimal. It made no estimates, but indicated that it would still be able to report a profitable 3rd quarter.
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