The September 11th attack
Insurers expect huge losses from trade center claims
Bloomberg News Service
NEW YORK — American International Group Inc. said its losses from Tuesday's terrorist attack that destroyed the World Trade Center and killed thousands may reach $500 million.
Bloomberg News Service
"It is impossible for any company to precisely estimate total losses at this time," said AIG Chairman Maurice "Hank" Greenberg in a statement last week. "Although AIG's property insurance coverages on the World Trade Center complex are minor, as the world's largest commercial insurer, we expect to receive claims from many insureds across a wide range of coverages."
American flags graced the United Airlines counter in San Francisco International Airport after last week’s terrorist attacks. Industry losses could reach $10 billion.
The Insurance Information Institute, an industry group, said insured losses from the attack on the trade center may top the $15.5 billion insurers paid out for damage to southern Florida caused by Hurricane Andrew in 1992. J. Paul Newsome, a Lehman Brothers Holdings Inc. analyst, said claims could reach $30 billion.
Axa SA said claims will cost it $300 million to $400 million this year. Hannover Re said it expects claims of about $365 million.
Axa's liability is less than the $635 million in claims faced by its main European rival Allianz AG. Lloyd's of London said it has a "substantial" exposure.
"Axa can handle this amount," said Ralph Bressler, an analyst at Bankhaus Hermann Lampe in Duesseldorf, Germany. "It won't be a problem."
The worst assault on the United States since Pearl Harbor may cause the U.S. economy to shrink in the third quarter, the first contraction in eight years, economists said. Travel and financial-services companies are among companies most affected.
Swiss Reinsurance Co. and Munich Re, the world's biggest reinsurers, said they may face claims totaling $1.6 billion. Lloyd's didn't estimate its loss.
