Beirut explosion will be "a major loss" for Hannover Re

6 August 2020 — Ana PREDA
Beirut explosion from 4th August 2020 will "pretty certain" be "a major loss" for Hannover Ruck SE, Sven Althoff, reinsurer's head of property and casualty, commented, cited by S&P Global Market Intelligence.

Althoff added that it is "impossible for me to comment right now" the amplitude of the event on Hannover's, but the reinsurer expects it to be labeled as a major loss, meaning that it will exceed EUR 10 million. "We have to assume there is a good level of penetration here, so from that point of view, I guess you will see this on our major loss list on the third quarter," Althoff further commented.

Hannover Re Group ended the first half of 2020 with a net income of EUR 402 million, 39.3% lower than the same period of 2019. In the second quarter of 2020, Hannover Re set aside reserves for estimated losses associated with Covid-19 in an amount of EUR 380 million and hence reserved altogether EUR 600 million related to property and casualty reinsurance in the first six months.

On 4 August 2020, in capital city of Lebanon, Beirut, a warehouse filled with flammable chemicals caught fire, causing a devastating explosion, which killed at least 137 people, injured about 5,000 and made as many as 300,000 people temporarily homeless, BBC reports.


Sources: spglobal.com, bbc.com

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