Allianz Is Lead Reinsurer of $97.3 Million Plane in Ukraine

Jul 18, 2014 8:19 am ET

(Updates with Atrium declining to comment in the third paragraph. For more on the plane’s downing, see EXT2 <GO>.)

July 18 (Bloomberg) -- Allianz SE is the lead hull and liability reinsurer on a Malaysia Airlines passenger jet that was shot down over eastern Ukraine.

The aircraft’s value is about $97.3 million, London-based insurance broker Aon Plc, which tracks the market for aviation coverage, said yesterday in a report. Atrium Underwriting Group Ltd. was the leader for war coverage, which could pay claims if the damage is tied to terrorism, Aon said.

“As leading reinsurer of Malaysia Airlines for aviation hull and liability coverage, Allianz Global Corporate & Specialty stands by to support our client as fully and quickly as possible,” Jacqueline M. Maher, a spokeswoman for Munich- based Allianz, said in an e-mailed statement. “It is much too early to comment on reports of this tragic incident while details are still being confirmed, except to extend our deepest sympathy to all those affected by this crash.” Atrium’s Liz O’Rourke declined to comment.

The Boeing Co. 777 crashed near the town of Torez, about 30 kilometers (18 miles) from the Russian border, killing all 298 people on board. The plane was en route to Kuala Lumpur from Amsterdam. The government in Kiev blamed the attack on pro- Russian rebels, an accusation the separatists denied.

The attack threatens to raise tensions in Ukraine’s civil war. Carriers including Deutsche Lufthansa AG, Air France-KLM and OAO Aeroflot are shifting planes away from the region, which sits astride some of the busiest air routes between Europe and Asia.

Atrium provides coverage through the Lloyd’s of London market. Enstar Group Ltd. purchased a majority stake in Atrium last year.

Willis Group Holdings Plc brokered the coverage, said Colleen McCarthy, a spokeswoman for the company.

--With assistance from Kelly Gilblom in New York.