Paris Airport Collapse Has Global Aerospace Reinsurance
NU Online News Service, May 26, 2 :54 p.m. EDT?Global Aerospace Underwriting Managers Ltd. of London appears to be the lead reinsurer for claims from the terminal collapse at Charles de Gaulle International Airport in France, an investment research firm said. [@@]
According to the New York-based Prudential Equity Group, the primary insurance coverage layer was written by AXA and a number of other French carriers.
The Sunday incident involved a 30-meter section of roof over Terminal 2E's boarding and waiting area, which caved in, killing four travelers and injuring a number of others. There are now two investigations underway, one judicial and one administrative, to determine the cause of the collapse. Authorities said terrorism has been ruled out.
Prudential Equity Group said Paris-based AXA, and other French insurers, wrote the primary layer of coverage for the terminal, which includes coverage for property damage as well as bodily injuries.
The collapsed facilities at the airport cost $900 million to build, Prudential noted, adding that the potential impact to the insurance industry may be more or less than this amount depending on the coverage in place.
Prudential analyst Jay Gelb noted that "we suspect that a meaningful portion of the loss may be picked up by reinsurers." The lead reinsurer for this risk, Mr. Gelb said, appears to be Global Aerospace Underwriting Managers Ltd. of London. The major pool members of Global Aerospace Underwriting include: Converium Holding AG in Zug, Switzerland; the Munich, Germany-based Munich Re; Mitsui Sumitomo Insurance Co. Ltd. in Tokyo, Japan; National Idemnity, part of Berkshire Hathaway Inc. in Omaha, Neb.; and Tokyo Marine, based in Tokyo, Japan.
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