Munich Re Expects Beirut Losses of €100 Million; Sees Slowdown in COVID-19 Losses
Munich Re said it faces claims of at least 100 million euros ($118 million) stemming from the deadly explosion that ravaged much of downtown Beirut last month.
The German reinsurer said losses in the “low three-digit-million euro range” are expected, mostly relating to property, according to a company statement on Monday. The blast caused as much as $4.6 billion in physical damage, according to an initial assessment led by the World Bank. Munich Re said previously that it faced a “major loss” from the explosion.
More than 180 people were killed and thousands injured when a vast consignment of explosive material detonated at Beirut’s port on Aug. 4, devastating surrounding neighborhoods.
Error! Filename not specified.A vehicle sits at a damaged gas station following the explosion at the Port of Beirut on Aug. 4.
Munich Re said it expects a similar volume of losses from damage caused by hurricanes Hanna, Isaias and Laura in July and August, according to the statement. By contrast, the California wildfire season isn’t seen having a material impact on the company.
Losses related to Covid-19 have slowed in recent months, according to the statement. Munich Re suffered a 1.5 billion-euro hit in the first half of the year. The reinsurer issued a profit warning in March and halted a share-buyback program, citing a surge in claims related to the outbreak, especially from the cancellation and postponement of large events. The company has not issued a new profit guidance for 2020.
Photo: A vehicle sits at a damaged gas station following the explosion at the Port of Beirut on Aug. 4.
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