Global Insurers Acknowledge Increased Exposures from Attacks

October 10, 2001

A number of global insurers/reinsurers have acknowledged greater exposure to claims related to the destruction of the World Trade Center, with increased estimates for the amount they expect to pay out.

The total cost to the world insurance industry of the attacks was initially put at about $10-15 billion, but has been steadily creeping higher. Analysts currently estimate it to be $30 billion or more, making it the costliest catastrophe ever.

The following estimates are according to a Reuters report released Oct. 9: ACE Ltd. Bermuda $550 million; AIG U.S. $500 million; Allianz Germany $912.4 million; Axa France $550 million; Berkshire Hathaway U.S. $2.2 billion; BRiT UK $102 million; CGNU UK up to $51 million; Chaucer UK $12-18 million; Chubb U.S. $600 million; CNA Financial U.S. $200-$350 million; Cox Insurance UK $44.22 million; Everest Re Barbados $75 million; Fairfax Financial Canada $100-$125 million; Hiscox UK $29 million; General Electric U.S. $600 million; Generali Italy $20 million; Goshawk Insurance UK $12 million; Hannover Re Germany $367 million; Kiln UK $23.47 million; Lloyd’s UK $1.9 billion; Markel U.S. up to $75 million; MetLife Inc. U.S. $300 million; Munich Re Germany $1.95 billion; OneBeacon U.S. up to $175 million; PartnerRe Bermuda $350-$400 million; QBE Insurance Australia $124 million; Royal Sun Alliance Britain $220 million; SCOR France $150-$200 million; St. Paul U.S. $700 million; Swiss Re Switzerland $1.25 billion; Wellington UK $74 million; XL Capital Bermuda $700 million; Zurich Financial Switzerland $700-900 million.

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