Dr. Hans-Jürgen Schinzler, Chairman of Munich Re’s Board of Management, repeated his concerns about the industry and the affects of another aviation tragedy in New York so soon after September 11.
“The plane crash in New York on the 12th of November is further proof of the pressing need to fundamentally rethink and reassess the risk situation as a whole, and not only in aviation,” he stated in a company bulletin.
Munich Re anticipates claims exposure of less than $ 50 million from the crash, but it pressed the point that it now expects the reinsurance market to refocus “on proven principles of risk assessment and risk assumption,” which will “result in markedly improved terms of trade in the current renewals of many reinsurance treaties.”
The world’s largest reinsurer also announced that in view of the $506.5 million third quarter loss suffered by American Re, its U.S. subsidiary, it would “get a capital injection of over US$1 billion from Munich Re.” It also plans to inject $80 million into Munich American Reassurance Co., its U.S. life reinsurance subsidiary.
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