Allianz AG has announced plans to pump $750 million into its U.S. Fireman's Fund Insurance Co. unit to cover asbestos-related claims.
The investment is the third time in two years Europe's largest insurer has been forced to shore up the subsidiary.
The money will double reserves to $1.51bn and will be
put into the unit at the end of the third quarter.
Spokesman Joerg Allgaeuer said: "The whole asbestos thing will haunt insurers."
Chairman of Taube Hodson Stonex Partners Ltd, Nils Taube said: "I'm almost surprised it's not more for Allianz."
Asbestos manufacturers such as ABB Ltd. and insurers like
Munich Re face costs of up to $200 billion in the U.S. to
cover suits from people who claim exposure to the material caused illness.
