Reinsurer Sees Major Loss From Concordia Capsize

January 24, 2012

German reinsurer Hannover Re AG says it expects the fatal capsizing of the Costa Concordia cruise ship to cost it tens of millions of euros (dollars).

Hannover Re said Monday it expects losses of some (euro) 30 million ($39 million) from marine hull insurance.

It said it’s difficult to say how large liability claims will be. It estimates that, based on assumptions that the total market loss could run into the triple-digit millions of euros, the disaster’s total cost to Hannover Re could be “in the mid-double-digit million euro range.”

Thirteen people have been confirmed dead after the Jan. 13 accident in Italy. Nineteen are listed as missing.

Reinsurers offer backup policies to companies writing primary insurance policies. Reinsurance helps spread risk so the system can handle large losses from disasters.

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