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Property insurer expects London fire payouts to exceed 25 million pounds
June 15, 2017 / 8:39 AM / 5 months ago

Property insurer expects London fire payouts to exceed 25 million pounds

OSLO (Reuters) - This week’s fire in a 24-storey block of flats in London is expected to cost property insurers more than 25 million pounds ($31.8 million), Norwegian insurer Protector Forsikring (PROTCT.OL) told Reuters on Thursday.

Damage is seen to a tower block which was destroyed in a fire disaster, in north Kensington, West London, Britain June 15, 2017. REUTERS/Peter Nicholls

The company expects the cost to be covered mainly by its reinsurance programme.

“Reinsurance is handled by Munich Re (MUVGn.DE), which will pick up almost the entire cost,” Protector Chief Executive Sverre Bjerkeli said.

The insurance policy for the building itself amounted to about 20 million pounds, while additional costs, including alternative housing for residents, would make up the rest, he added.

The Norwegian company wrote the insurance policy for the Grenfell Tower building, where authorities have confirmed 12 deaths following Wednesday’s fire.

Britain’s Jardine Lloyd Thompson (JLT.L) said it was the insurance broker for Grenfell Tower.

“We are the brokers in the case and we are working closely with our client to assist in whatever capacity we can,” JLT said in a statement emailed to Reuters.

($1 = 0.7863 pounds)

Reporting by Joachim Dagenborg in Oslo and Noor Zainab Hussain in Bengaluru, writing by Terje Solsvik; editing by Jason Neely

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