Reinsurers post Japan quake loss estimates

German reinsurance group Hannover Re said Wednesday that the Japanese disasters would cost it around €250 million ($350 million), six times less than global giant Munich Re.

Reinsurers post Japan quake loss estimates
Photo: DPA

Any assessment of losses is “still subject to considerable uncertainty,” a Hannover Re statement noted, but the firm based the figure on a preliminary analysis.

The world’s biggest reinsurance company, Munich Re, said late Tuesday that the March 11 Japanese earthquake and tsunami would result in claims payments of around €1.5 billion.

After initially posting marked drops on the Frankfurt stock exchange, shares in the two groups recovered in late morning trades.

Swiss Re, the second biggest global reinsurance group, has estimated it will have to pay out $1.2 billion (€850 million) in claims related to the quake and tsunami.

In Japan, the government estimated the total cost of the quake and tsunami could hit ¥25 trillion ($309 billion), and that growth would be affected in the next fiscal year.

Shares in Hannover Re showed a loss of 0.26 percent at €38.62 in Frankfurt trading.

Munich Re shares were essentially unchanged at €110.05, while the Dax index on which they are listed was 0.14 percent higher overall.


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Merkel says ‘still time’ to find Brexit solution

There is still time to find a solution to Britain's exit from the EU, German Chancellor Angela Merkel said Tuesday, voicing optimism on a political deal over the tricky "backstop" that has stymied progress.

Merkel says 'still time' to find Brexit solution
Merkel speaking to Japanese students at Keio University on Tuesday. Photo: DPA

Speaking to Japanese and German business leaders in Tokyo, Merkel stressed that “on the one hand, time is pressing” and businesses using “just-in-time” delivery processes could not afford lengthy customs procedures.

However, she added: “From a political point of view, there is still time. Two months is not a long time but there is still time, and this should be used by all sides.”

SEE ALSO: 'We must do everything to avoid a no-deal Brexit': Merkel

SEE ALSO: Merkel spokesman says reopening Brexit deal 'not on agenda'

Britain is poised to leave the EU at the end of March following a 2016 referendum.

Merkel acknowledged the issue of the unpopular Northern Ireland backstop 
provision was “complicating” Brexit talks.

The backstop is intended to ensure there is no return to a hard border with 
Ireland, but Brexit supporters fear it will keep Britain tied to EU customs rules.

She said the issue with the backstop was a “problem that is precisely defined and therefore one should be able to find a precisely defined solution”.

SEE ALSO: How to swap your German driving license for a British one

“But this solution depends on the question of what the future relationship 
between Britain and the EU will be like and what type of trade deal we sign 
with each other,” added the chancellor.

Throwing the ball into London's court, she stressed: “It will be very important for us to know what exactly the British side sees as its future 
relationship with the EU.”

After meeting Japanese counterpart Shinzo Abe Monday, she urged “creativity” and “goodwill” to find a solution. 

However, she was clear that any solution could only come via the political 
declaration attached to the withdrawal agreement — rather than re-opening 
talks on the actual exit deal.

There are concerns in London that any tweaks to the political declaration  will not be legally binding.

Her Monday comments were seen as conciliatory and boosted the pound as British Prime Minister Theresa May prepares to engage in further talks with EU officials to break the Brexit deadlock as the exit date approaches.

A top EU official, however, sounded the alarm bell after talks with British 

Martin Selmayr, the right-hand man of European Commission President 
Jean-Claude Juncker, said the meeting had confirmed the view that the EU was right to start in December 2017 preparations for a “no-deal” Brexit.

Merkel said relations between Britain and the EU bloc were currently strong and would remain that way. 

“Over the last two years during which we have been dealing with Britain's 
exit, we have worked more closely together than during several years when Britain was a member of the European Union,” she quipped to laughter.