Allianz Says It Is Reinsurer of Crashed Malaysia Airlines Plane

By Isabel Gomez

FRANKFURT--Germany's Allianz SE (ALV.XE) said Friday it is the main reinsurer for the Malaysia Airlines plane that crashed in eastern Ukraine, which is estimated to be worth $97.3 million.

British insurance broker Aon PLC gave the estimate of the aircraft's value in a report, but Allianz wouldn't confirm the amount.

"It's much too early to comment on the damage," said Allianz spokeswoman Bettina Sattler. "Unfortunately after accidents like this, it usually takes months until the correct scale of the damage is determined," she added.

Boeing flight MH17 crashed in eastern Ukraine near the Russian border when it was flying from Amsterdam to Kuala Lumpur. The cause of the crash is still unclear.

The plane was allegedly shot down, but Ukrainian government and the pro-Russian separatists in Donetsk have so far blamed one another for the accident.

Munich-based Allianz said it would pay back the plane's hull and liability insurance to a pool of primary insurers. It also said it is in contact with all the parties concerned and will fully support Malaysia Airlines.

Aircraft are normally insured by several companies as collision damage must be insured by a hull insurance, and passengers must be insured via liability insurance. In this case, Allianz is responsible for both hull and liability reinsurance. The jet is also insured for damage caused by war. If it is confirmed that the flight was shot down, then it is likely this insurance would apply.

Write to Isabel Gomez at [e-mail]

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