Munich Re’s Chairman Hans-Jürgen Schinzler recently indicated that the world’s largest reinsurer may actually be exposed to less than the €2.6 billion ($2.55 billion) it has reserved for the payment of WTC related claims.
In the interview with the German newspaper Welt am Sonntag, as reported by Reuters News Agency, Schinzler said that some €600 million ($589 million) had been reserved on the basis of the company’s previous loss experience, but that so far nobody had claimed any of these funds.
In July Munich Re raised its estimates of WTC losses by $500 million. The news, coupled with a second quarter loss of $377 million (See IJ Website Aug. 30) and the company’s refusal to reconfirm its 2002 net profit forecast of €1.7 billion ($1.67 billion), has depressed the company’s share price. It could certainly use the additional €600 million.
Topics Claims
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