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Monday, 8 October, 2001, 13:35 GMT 14:35 UK
Insurer doubles Trade Center losses
Clearing up the World Trade Center
Some fear the total bill could be more than $30bn
Zurich Financial, one of Europe's biggest insurers, has admitted that its liabilities from the World Trade Center attacks could be twice as high as initially hoped.

Loss estimates
ACE and XL Capital: $1bn-1.1bn
AIG: $500m
Allianz: $930m
AXA: $300m-400m
Berkshire Hathaway: $2.2bn
Chubb: $500m-600m
CNA Financial: $200m-350m
Employers' Re: $600m
GE: $600m
Hannover Re: $365m
Munich Re: $1.95bn
Partner Re: $350m-400m
Royal & Sun Alliance: $220m
Scor: $150m-200m
Swiss Re: $1.25bn
Zurich Financial: $700m-900m

The firm now says its exposure could be $700m-900m (472m-607m), up from its first estimate of $400m.

If the figure proves correct, it will be the highest payout in Zurich's 130-year history.

Zurich said it was "no longer feasible" to expect profits to hit its target of $1.8-2bn this year, causing its shares to tumble by as much as 14% on Monday.

The firm was keen to put the loss in perspective, however, pointing out that even the highest figure only represented less than 2% of its annual premium revenue.

Join the queue

Zurich is the latest major insurer sharply to hike its assessment of the financial fall-out from the attacks.

The Lloyd's insurance market
Lloyd's faces losses of at least 1.3bn

One firm, US reinsurer Berkshire Hathaway, now says it expects a loss of $2.2bn - the biggest liability figure announced by an insurer so far.

Munich Re and Swiss Re - the world's two largest reinsurance companies - have doubled their estimates to $3.2bn.

German insurance giant Allianz has said it faces claims of $930m, compared with an earlier forecast of $640m.

Lloyd's of London, the main insurance market, calculates its total losses at as high as 1.3bn.

Already, liabilities amounting to more than $13bn have been admitted by insurers.

Analysts now say that the overall bill could exceed the $20bn initially predicted - with estimates for overall liabilities currently ranging from $30bn to more than $50bn.

See also:

21 Sep 01 | Business
Insurance bill mounts further
10 Oct 01 | Business
Insurance costs 'incalculable'
12 Sep 01 | Business
Insurers face record claims
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