Reinsurer Hannover Re: Rita caused damage exceeds 150 million

Reinsurer Hannover Re AG said Thursday that its exposure to Hurricane Rita will likely total 150 million (US$181 million) and would not affect its overall profit forecast for this year. The Hanover-based reinsurer, the world's third biggest in terms of gross premiums, said the total insured damage caused by Rita, which struck Texas and Louisiana last weekend, would likely range between US$4 billion and US$7 billion (3.3 billion and 5.8 billion).

Hannover Re said it still expects its 2005 net profit to be around 309.1 million (US$372 million), on a par with last year.

Munich Re, the world's biggest reinsurer, said Wednesday that damage caused by hurricanes Katrina and Rita could cost the insurance industry up to US$40 billion (33.3 billion). Munich Re said it was estimating the overall insured losses from Katrina at up to US$30 billion (25 billion) and gave a tentative estimate for losses from Rita of US$5 billion to US$10 billion (4.2 billion to 8.3 billion), informs the AP. I.L.

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