Allianz and Munich Re's shares plunge following massive earthquake and tsunami devastating coastal Japan
Munich Re’s shares plunged 4.93% following the massive earthquake and tsunami which has devastated coastal Japan.
Allianz shares were down by 2.35 percent to 99.6 euros on opening trading as news of the disaster shocked investors.
The earthquake, measuring 8.9 in magnitude, caused 10m high tsunami waves and has left eight people dead and dozens injured.
The coastal city of Sendai is especially badly hit and Japan’s Disneyland was underwater.
Munich Re's shares were especially badly hit as investors noted yesterday's annoucement. The German giant said its €2.4bn (US$3.3bn) profit target for 2011, but said this will only be achievable if major losses for the rest of the year are below expectations.
Shore Capital analyst Eamonn Flanagan said: “Japan earthquake - we note reports that a 8.9 earthquake has hit the Japan, c250miles from Tokyo, accompanied by a tsunami.
"Way too early to assess damage but, following on from the recent Christchurch earthquake in Q1 2011 this is, firstly, likely to hit the Lloyd's insurers and, secondly, further eat into the 2011 catastrophe programmes and reserves within the companies.”
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