ALLIANZ AND AXA SETTLE DEUTSCHE BANK’S SEPTEMBER 11 LOSS

Allianz of Germany and AXA of France have agreed to pay $140m to Deutsche Bank as final settlement for the damage suffered by the bank’s New York headquarters on September 11, 2001. Deutsche Bank had sued the two insurers for failing to pay their share for the demolition of the building, and the two carriers countersued on accusations that the bank was seeking an “inflated settlement”. Under the agreement, New York state agency Lower Manhattan Development Corp will pay the bank $90m for the land occupied by the building and $45m for the razing of the structure. Any cost of demolition in excess of this will be met by the insurers. However, the agreement does not address claims relating to other Deutsche Bank properties in Lower Manhattan, nor does it deal with the bank’s business interruption claims. The bank wanted a total of $1.05bn in insurance proceeds to pay for the demolition of the 41-storey structure, which suffered a 24-storey gash in its facade when it was struck by debris from the collapse of the World Trade Center. The deal calls for Allianz to pay for 60% of the settlement and AXA 40%. Last year, two other carriers — Chubb and Zurich Financial — agreed to pay $530m to settle Deutsche Bank’s property claim.