Air crashes pressure Aioi

Asia-Pacific

Japan’s Aioi Insurance is facing new losses following exposure to three major aviation crashes this month. Aioi updated forecast losses for fiscal year 2001 ending 31 March to Yen126bn (US$1bn) on overseas reinsurance claims from its US underwriting agent Fortress Re, largely from 11 September. The recent crashes are estimated to have cost Aioi several hundreds of million Yen in reinsurance for the EAS Airlines plane which crashed in Nigeria, the EgyptAir crash in Tunisia and the China Northern Airlines crash in the sea off Dalian. Aioi owns 48% of Fortress Re and the agency’s ability to pay claims came under pressure when Taisei Fire & Marine, which owned 26% of Fortress Re, collapsed under the weight of 11 September claims. Fortress Re was reported to owe its insureds US$2.3bn from 11 September claims alone.