Hannover Re could face €10m Costa Concordia claim

Hannover Re expects a damage claim of at least €10m from the Costa Concordia wreck, according to reports.

In a preliminary damage report broker Guy Carpenter cited the loss figure anticipated by the German reinsurer after it said that it was expecting a major loss on Monday.

Costa Concordia operator Carnival has confirmed to Guy Carpenter that insurance coverage for damage to the vessel, with a deductible of approximately $30m. It also said its third-party personal injury liability was subject to an additional $10m deductible. Carnival said it self-insures for loss of use of the vessel, prompting the company to estimate the impact on its 2012 earnings to be between $85m and $95m.

According to industry sources, the Costa Concordia is insured for €405m.

Reports have suggested that XL Group leads the insurance cover while RSA Insurance and Generali also provide coverage.

Generali confirmed to Insurance Insight that it insures the vessel on Monday, but said the impact would be marginal after reinsurance.

For potential injury claims, Standard Club said it was one of several P&I clubs providing cover for the Costa Concordia.

At least six people died after the luxury cruise ship carrying 4,229 passengers and crew ran aground off the Italian west coast on January 13 in calm weather conditions. Italian, Spanish, German, French, British and American nationals were reported to be among the 3,200 passengers on board the vessel.

The 290-meter-long Costa Concordia was on a trip around the Mediterranean when it hit rocks near Isola del Giglio off the Tuscan coast, ripping a hole in its hull and prompting a major rescue operation. A large gash can be seen in the ship's hull but officials said its fuel tanks did not appear to have been damaged, lessening the danger of an oil spill.

The ship's captain has been arrested and an investigation is ongoing.