Katarina bill could reach EUR 25bn: Munich Re

28th September 2005, Comments 0 comments

28 September 2005, MUNICH - Insurance companies are likely to have to pay out USD 30 billion (EUR 25 billion) to cover damage caused by Hurricane Katrina, Europe's biggest re-insurer, Munich Re, said Wednesday.

28 September 2005

MUNICH - Insurance companies are likely to have to pay out USD 30 billion (EUR 25 billion) to cover damage caused by Hurricane Katrina, Europe's biggest re-insurer, Munich Re, said Wednesday.

The Munich-based company estimated that the next hurricane to hit the southern United States, Rita, which tore a swathe of destruction Saturday through eastern Texas, would cost insurers between EUR 5 and 10 billion.

Munich Re said its own gross exposure, at EUR 1.1 billion was likely to be bigger than the EUR 400 million it had first expected for Katrina. Its gross exposure to Rita was likely to total about EUR 230 million.

Re-insurers are the insurers to insurance companies, helping to spread onto many shoulders the load of paying for huge disasters.

Though not all the property devastated by Katrina was insured, the industry's bill would approach USD 30 billion (EUR 25 billion) and could turn out higher because some knowledge was still not available, Munich Re said.

DPA

Subject: German news

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