FRANKFURT, Germany (AP) -- German reinsurer Munich Re said Wednesday it has set aside an extra $495 million to cover claims from the Sept. 11 terror attacks on the World Trade Center.
The world's largest reinsurer said the increase was needed to cover claims that might come in later. Despite the extra reserves, it said it still expected to make a profit in the first half of this year.
Alluding to ``the unique complexity and magnitude of the WTC event,'' a company statement said that ``with this adjustment, Munich Re has made provision for possible claims which may arise in time even though not yet reported and which are thus difficult to estimate.''
The company originally set aside about $2.1 billion to cover its share of the damage, which includes not only building and property losses but also massive claims for business interruption from companies shut down by the attacks.
Reinsurance companies provide backup insurance to primary insurers, spreading the burden of claims for catastrophic events.
Insurance experts said that the major reinsurance companies have been able to handle the Sept. 11 damages because the risk was spread among a number of companies.
The company made a profit of 250 million euros last year, down 1.5 billion euros from the previous year largely because of the terrorist attacks.
