Latest Loss Estimates on WTC Disaster

September 28, 2001

The most recent loss estimates from the attacks on the United States show the scope of the tragedy, as insurers in London, Canada, and Bermuda made estimates of their potential damage exposures.

Lloyd’s Cox Insurance Holdings Plc announced that it anticipated direct losses from the disaster to be around £30 million ($44 million) and that it would pay an additional £12 million ($17.6 million) to reinstate reinsurance cover. It did report a profit for the 1st half of the year, but deferred any dividend payment in light of the uncertain nature of WTC claims.

Canada’s London Insurance Group, which includes Great-West Life, estimated that losses, principally from its London Reinsurance group, which is a subsidiary of London Life would be around $73 million. Participating policyholder accounts stood to lose around $9 million.

In Bermuda Max Re made provisions for losses of around $5 million, but indicated that this would be significantly reduced by reinsurance..

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