Unsold Korean ships covered by Munich credit reinsurance
Munich Re has made a provision against a possible $200m claim from South Korean container shipbuilders stuck with vessels that have not been paid for, Reuters reports.
"We don't expect further expenses for this damage claim, at least not in a significant amount," a spokesman for the company was quoted as saying in the Financial Times Deutschland that hits newsstands on Friday.
The financial crisis is boosting insolvencies and would create "considerable losses" in Munich Re's credit and surety business this year and next, finance chief Joerg Schneider said.
Claims would total hundreds of millions of euros each for both 2009 and 2010.
