MUNICH RE MAY HAVE OVERSTATED WTC EXPOSURE

Munich Re has revealed that it may not make full use of the funds it has set aside to cover its September 11-related exposure. The reinsurer, which on Friday abandoned its full-year profit forecast in the face of a second-quarter pre-tax loss of 1.32bn euro, raised its forecast for World Trade Center (WTC) claims in July by a further $500m to $2.6bn. However, chief executive Hans-Jürgen Schinzler said in an interview with German newspaper Welt am Sonntag that “more than 600m euro relates to damages which we have assumed on the basis of our experience , but which nobody has yet claimed”. The terrorist attacks on the twin towers of the WTC in New York are expected to generate a total claims bill of about 60bn euro, according to the latest industry estimates.