Munich Re raises cost estimate by 25%

Cruise Liner Costa Concordia

Insurance payouts related to last year’s sinking of cruise liner Costa Concordia have continued to rise and are likely to top $1.1bn (£716.1m) as salvaging of the wreck continues, reinsurer Munich Re said on Tuesday.

The ship struck a rock as it sailed close to the picturesque Italian island of Giglio last year. A total of 32 people were killed in the disaster, and more than 4,000 passengers and crew were evacuated. The ship had a value of $500m, according to Munich Re.

“That’s already been paid for,” Munich Re board member Torsten Jeworrek was quoted by Reuters as saying at a news conference on the reinsurer’s second-quarter earnings.

Salvage operation

The salvage operation aims to remove the vessel intact rather than cutting it into pieces, which adds to the cost and time involved in removing the wreck, Jeworrek said.

Munich Re raised its estimate for its own share of the burden to €100m (£86m), up from  €80m (£68.8m).

Four Costa Concordia crew members and a company official were sentenced to jail in Italy last month for their part in the disaster, leaving only the ship’s captain, Francesco Schettino, still on trial.