|
Zurich expects $900M loss
|
 |
October 8, 2001: 6:37 a.m. ET
Swiss insurer expects $900 million loss from U.S. terror attacks
|
LONDON (CNN) - Zurich Financial Services, Europe's third largest insurer, on Monday raised its estimates for losses from last month's terror attacks.
Insurance companies expect claims for the attacks on the World Trade Center could top more than $30 billion, while actuaries - the accountants to the insurance industry -- estimate costs could be as high as $100 billion.
Zurich now expects pretax losses of $700 million to $900 million, up from a previously forecast loss of less than $400 million.
"While this is the largest insurance loss ever experienced in the Group's history, it represents less than 2 percent of the Group's $55 billion annual premium volume," the company said.
The company's stock plunged 11.4 percent to 311.00 Swiss francs in Zurich trade. Zurich's share price has lost more than 60 percent of its value, after the insurer issued two profit warnings earlier this year.
Zurich issued its third warning on Monday, saying investment income would decline as financial markets tumble.
"In addition to the insurance losses, performance was likely to be hurt further by lower capital gains and investment income, reduced earnings from businesses..." linked with equity markets and the general economic slowdown, the company said.
Lloyd's of London, the world's biggest insurance market, expects losses of $1.9 billion. It faces claims from American Airlines and United Airlines, which had planes hijacked and slammed into the WTC.
Allianz, Europe's second-biggest insurer, said last month its estimated losses could reach $930 million. The world's two largest reinsurers Munich Re and Swiss Re doubled their estimates for the claims, saying they could pay up to $3.2 billion as they undertook a more detailed assessment of the disaster.
Warren Buffett's Berkshire Hathaway said it expected $2.2 billion in pretax losses from attack claims, the largest exposure acknowledged so far. 
|
|
|
|
|
 |
|
