Allianz AG, Europe’s largest insurer, announced that it could lose 80 million euros ($107.6 million) in payouts related to the World Trade Center terrorist attacks as New York District Court ruled today that the attacks are to be considered as two separate events.
The decision will allow World Trade Center leaseholder Larry Silverstein to get payments totalling $1.1 billion in addition to the minimum payment of $3.55 billion in reimbursement provided by all insurers involved in the case. The assessment stated that the replacement of 10 million square feet space of offices wiped out in September 11 attacks would entail the cost of $7.5 billion.
Lucio di Geronimo, an analyst at HVB Group in Munich, admits that the impact on Allianz’s balance sheets will be negative although “manageable.’’
The worst case scenario envisages an additional net cost of $107.6 million to the insurer after reinsurance reimbursements.
According to Allianz spokesman Ashraf Sharkawy, the exact amount “will be determined through an appraisal process.” He added that “that wouldn’t have, at the moment, a negative impact on our result. It won’t affect our plans.’’
Allianz shares rose 49 cents, or 0.5%, to 96.20 euros and traded at 95.96 euros as of 12:45 p.m. in Frankfurt.
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