Hannover Re Sees Major Claim From Cruise Wreck Off Italian Coast

Germany's Hannover Re AG (HNR1.XE), one of the five largest reinsurers worldwide, Monday said it expects a major claim from the cruise wreck off the Italian coast.

A company spokeswoman said the company now defines a major claim as a claim of at least EUR10 million, like other peers such as Munich Re AG (MUV2.XE). Previously, Hannover Re's definition of a major claim was EUR5 million.

However, it is too early to give an exact estimate for the claim Hannover Re expects from the event, the spokeswoman said.

She said the claim will be in its marine reinsurance business, involving the property and casualty damage to the hull of the ship itself and to the more than 4,000 passengers, including salvaging costs.

Spokeswomen for Munich Re AG (MUV2.XE), the world's largest reinsurer by gross premiums, and for Allianz SE (ALV.XE) said it was too early to give an estimate.

Cruise Costa Concordia, owned by Carnival PLC (CCL.LN), ran aground off the Italian coast Friday, after striking a rock formation near a small island off the Tuscany coast. So far, six people have been reported dead, with a number of passengers still reported missing.

According to business daily Il Sole 24 Ore, which didn't cite its sources, companies exposed to the disaster include Assicurazioni Generali SpA (G.MI) and insurance broker AON Corp. (AON), which insures Carnival's fleet.

As for protection and indemnity for the crew and passengers, Il Sole 24 Ore reports that Standard Alliance Insurance PLC has insured Carnival for nearly $3 billion, adding that the value of the boat is estimated at EUR450 million.

-By Ulrike Dauer, Dow Jones Newswires; [phone]; [e-mail]