Tianjin insurance losses may equal USD1.5 bn

Two explosions in the Chinese port of Tianjin last week that killed more than 100 people could generate total insurance losses of USD1 billion to USD1.5 billion, Credit Suisse analysts said, citing initial estimates based on Chinese media reports.

Tianjin, the world's third-largest port in terms of total cargo volume, was hit by blasts that damaged a large industrial area and sent shock waves across several kilometres.

Insurance companies including Zurich Insurance and Allianz said they had received claims from clients that had been affected by the disaster but could not provide any estimate of the potential losses.

"Based on the available information, we do not anticipate major financial claims to arise from this incident, but we continue to assess the situation," said a statement from Allianz. Chinese insurers are also expected to be affected.

Credit Suisse said those affected would be mostly Chinese insurance companies as well as international groups that either insure multi-nationals or provide re-insurance coverage.

Global automakers had confirmed 4,950 cars were damaged in the blast, with most saying the vehicles were insured but declining to provide additional details. The number of cars damaged could climb above 10,000 when accounting for all the vehicles in the area as automakers struggle to assess the damage as authorities restrict access.