Insurance industry payouts related to last year’s sinking of cruise liner Costa Concordia have continued to rise and are likely to top $1.1 billion as salvaging of the wreck continues, reinsurer Munich Re said on Tuesday.Last year the ship struck a rock as it sailed close to the picturesque island of Giglio, prompting a chaotic evacuation of more than 4,000 passengers and crew. The ship had a value of $500 million, Munich Re said. “That’s already been paid for,” Munich Re board member Torsten Jeworrek told a news conference on the reinsurer’s second-quarter earnings.
London-listed (re)insurer Lancashire reported a smaller-than-expected 4 percent drop in its second quarter profit, as generally subdued claims allowed it to comfortably absorb a sharp increase in the cost of the Costa Concordia wreck, as well as losses on its investment portfolio. Lancashire made a pretax profit of $58.3mn in the three months to 30 June, the company said today (25 July), down from $60.6mn in the same period last year, but well ahead of the $39.1mn expected by analysts.
Lancashire beats forecasts despite bigger Costa hit Insurance insider
The Costa Concordia shipwreck looks set to cost the market nearly two-thirds more than previously expected due to a sharp increase in the expense of removing the stricken cruise liner, The Insurance Insider can reveal.
The total claims bill absorbed by the Costa’s protection and indemnity (P&I) clubs and their insurers is now expected to come in at $1.17bn, far exceeding the previous estimate of $744mn, according to industry sources.
The increase reflects a near doubling to $917mn in the
Costa Concordia loss balloons to $1.17bn Insurance insider
The 1 June hull and machinery (H&M) and increased value (IV) renewal placement for loss-hit cruise operator Costa Crociere has settled for flat pricing on the basis that the insured would not collect a no-claims bonus, The Insurance Insider understands.
Following the high-profile $500mn total loss of the Costa Concordia in 2012, the expiring placement had incorporated a loss addition premium (AP) and pushed the rate up 50 percent in cash terms from $30mn to around $45mn.
Underwriters settle for flat Costa hull renewal Insurance insider
Carnival Cruise Lines has had a rough few weeks, but as difficult as Triumph’s drift, Dream’s electrical failure and Legend’s propulsion problems have likely been on the Carnival Corp. PR team, these seaborne debacles have been harder still on the boats’ passengers. By way of making amends, Carnival has offered its indignant clients small amounts of cash and credits for exactly the sort of future cruises they probably want to avoid. That said, Carnival didn’t really have to offer the victims of their hospitality anything at all — an argument, if there ever was one, for third party insurance.
Carnival Cruise Lines And Why Third Party Travel Insurance Pays
Costa Concordia Salvage Update
Costa Concordia – IMO 9320544 – Callsign IBHD
Costa Concordia Ship Tour just before sinking on Friday 13th
The family of Sandor Feher, a Hungarian who died in the wreck of the Italian cruise liner Costa Concordia, is claiming $400 million compensation from the ship’s operators, Hungarian state news agency MTI reported, citing lawyers representing Feher’s parents.In the claim filed in a New York court, the family accuses Carnival (CCL) Plc, Carnival (CCL) Corp. and their Italian subsidiary, Costa Crociere, of “serious negligence”
Read More Bloomberg Businessweek
His comments came as Lancashire disclosed a 33 per cent year-on-year fall in its second-quarter profit to $60.6m, pushed lower by losses arising from the Costa Concordia cruise ship disaster. “We have watched with bemusement as company after company
Read More Financial Times
Read More Business Insurance
(Reuters) – British insurer Lancashire said it expected to return cash to shareholders this year as it reported a 33 percent drop in its quarterly profit, blaming bigger payouts related to the Costa Concordia shipwreck and dwindling investment returns. Lancashire, which insures heavy-duty assets such as oil rigs, ships and aircraft, made a pretax profit of $60.6 million in the three months to June
Read More Reuters
Los Angeles Times
I was looking at the wreck of the Costa Concordia, which ran aground Jan. 13 just outside Giglio’s harbor. As the ferry whipped past, my eyes were drawn to the great wreck, which lay on its side with a long, rusty gash in its hull. It name was inscribed on a white bow towering above the water. The ship was so close to the tiny harbor, massive and modern and incongruous.
Read More latimes
Read More Dieselduck
After an inauspicious start, 2012 will be another difficult and uncertain year for the maritime industry faced with the aftermath of the Costa Concordia, further problems in the Euro zone, pirate attacks and increased sanctions. The latest report reveals the Hull market is in a state of flux following the Costa Concordiadisaster in January. Some underwriters in the London insurance market, which will bear the majority of the estimated USD 500m hull claim, are adamantly refusing premium reductions or even flat renewals.