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Munich Re posts $1.1B loss
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November 29, 2001: 8:00 a.m. ET
World's biggest reinsurer reports Q3 loss on claims arising from Sept. 11 attacks
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LONDON (CNN) - Munich Re, the world's biggest reinsurer, posted a third-quarter loss of  1.2 billion ($1.1 billion) as it paid for claims from September's terror attacks.
The Munich-based company reiterated the attacks on the World Trade Center would cost it 2.1 billion, its biggest ever loss. Claims arising from for the attacks could be as high as $100 billion, insurers have said.
Lloyd's of London, the world's biggest insurance market, increased its estimate of losses to £1.9 billion ($2.7 billion) from an initial forecast in September of £1.3 billion.
Munich's stock rose 4.3 percent at 299.42 after the reinsurer said it expects a sharp rise in earnings next year as premiums, or money paid for insurance cover, rises.
"For the year 2002 the Munich Re group anticipates strong growth and a substantial increase in earnings." said Munich Re. "The group result (this year) will show a big reduction compared with last year but will probably still be positive."
The company said there were other factors that resulted in a third quarter loss, including the recall of cholesterol-lowering drug Lipobay, which has been linked to the deaths of 52 people; Typhoon Nari in Taiwan in mid-Septmeber and an explosion in a chemical plant in Toulouse on September 21.
That explosion resulted in the deaths of 29 people, injured hundreds of others and damaged scores of buildings, including schools, hospitals, businesses and homes. 
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