Aioi Insurance Co., which lost hundreds of billions of yen in reinsurance contracts as a result of the Sept. 11 terrorist attacks in the United States, faces new reinsurance obligations due to three aircraft crashes earlier this month, industry sources said Saturday.
The insurer has several hundreds of million yen in reinsurance obligations resulting from the May 4 crash of an EAS Airlines jet in northern Nigeria, the May 7 crash of an EgyptAir plane in Tunisia and the May 7 crash of a China Northern Airlines passenger aircraft in the sea off Dalian, they said.
The reinsurance contracts concern nonlife damages and other material damages to the aircraft.
In February, Aioi announced that it would incur a loss of 126.1 billion yen in fiscal 2001, to March 31, on overseas reinsurance claims at its U.S. agent.
The loss stemmed largely from contracts linked to the Sept. 11 attacks that it held via North Carolina-based insurance agent Fortress Re Inc.
The contracts were originally signed by Chiyoda Fire & Marine Insurance Co., before Chiyoda merged with Dai-Tokyo Fire & Marine Insurance Co. last year to become Aioi.
The sources said Aioi’s obligations related to the aircraft accidents were also signed via the same agent.
The sources said Nissan Fire & Marine Insurance Co., which also lost a large sum of money as a result of the Sept. 11 attacks, has some obligations in reinsurance contracts related to the Chinese plane crash.
Nissan Fire is checking contracts that may be related to the other two crashes, they said.
The two Japanese casualty insurers have tried to hedge risks in reinsurance contracts, as a result of their losses from the Sept. 11 attacks, by subcontracting reinsurance contracts, the sources said.
The new losses will not affect the insurers’ earnings results for fiscal 2001, they said.
The two insurers also had reinsurance obligations in the April 15 crash of an Air China Boeing 767 in Pusan, South Korea.
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