Zurich to face $600m Katrina cost

Katrina caused extensive damage

Swiss insurance group Zurich Financial Services has said that damage caused by Hurricane Katrina in the US will cost it about $600m (£341m) in claims.

However, Zurich cautioned that the final amount could yet change.

Some analysts say the total damage caused by Katrina could cost the insurance industry $60bn as a whole.

"The task of estimating Katrina claims payments at this stage involves considerable judgement calls," the company said.

Zurich is the latest insurer to put a figure on the cost of last month's storm, and it added that the claims were likely to be registered in its third quarter.

Munich Re, the world's biggest reinsurance firm, said last week that faces a bill for $782m in the wake of both Hurricane Katrina, and the much weaker Hurricane Rita.