Insurers fear huge cost for Paris terminal disaster

9th June 2004, Comments 0 comments

PARIS, June 9 (AFP) - The collapse last month of part of a modern terminal at Charles de Gaulle airport outside Paris could cost insurance companies hundreds of millions of euros with the bulk of the bill picked up by the reinsurance market, the association of French reinsurers, ARF, said Wednesday.

PARIS, June 9 (AFP) - The collapse last month of part of a modern terminal at Charles de Gaulle airport outside Paris could cost insurance companies hundreds of millions of euros with the bulk of the bill picked up by the reinsurance market, the association of French reinsurers, ARF, said Wednesday.

"This will be a fairly complex incident that will probably have to be evaluated at several hundred million euros," ARF president Thierry Masquelier said during a media conference presenting his association's accounts for 2003.

Four people, all passengers, died when part of the roof of Terminal 2E at the airport collapsed May 23. The tubular structure had been built less than a year ago at a cost of EUR 750 million (USD 920 million).

Masquelier said an exact figure would not be arrived at until investigations into the cause of the accident and the extent of the damage were completed. Initial results are expected to be known at the end of this month.

Several insurance guarantees would be involved in the pay-out, with "the largest share of the incident being taken care of by the reinsurance community," he said.

AXA, the French insurance group which covered the companies that carried out the construction, has said that it and partner Groupama had an exposure of up to EUR 200 million from the collapse, but that that would be brought down to a net EUR 10 million after the reinsurance contracts came into play.

Munich Re, the world's biggest reinsurer, said last week it could pay out "in the mid double-digit million euros range, depending on the cause of the disaster". The other reinsurers affected are Swiss Re, Scor and General Re.

© AFP

Subject: French news


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