The Beirut port explosion has been called a “significant loss event” by insurance insiders who believe the bill is likely to exceed $3 billion (Dh11.02bn).
As the massive clear-up operation continues in the Lebanese capital, major reinsurance companies are investigating the cost of the catastrophe caused by the explosion of 2,750 tonnes of ammonium nitrate last week.
The blast ripped through central Beirut, damaged buildings up to 7 kilometres away and destroyed large parts of the port. At least 171 people were killed and 6,000 injured.
Commercial properties including hotels and restaurants will account for a large number of insurance claims and Lebanese officials have reported economic losses of $15bn, most of which is uninsured.
A source at a prominent reinsurance company said that payouts were on the way despite fears that the cause of the explosion could mean liability was avoided.
"While it's still too early to quantify the financial cost of this tragedy, we would class this is as a 'significant loss event' in the insurance industry," the source said.
"But it's not one that's going to considerably destabilise the insurance markets, the main reason being that there is not a huge amount of 'insurance penetration' in Lebanon."
The chief executive of Munich Re, one of the world’s top reinsurance companies, agreed.
“We are assuming that Beirut will be a major loss for Munich Re," Christoph Jurecka said.
"But please understand that we cannot say anything at the moment as to the magnitude, so soon after the event.”
A Munich Re spokesman said a “major loss” referred to anything greater than €10 million (Dh43.3m).
It was too early to comment on the amount and share of Munich Re’s exposure, he said.
Sven Althoff, of Hannover Re reinsurers, believed the blast would constitute a “major loss” for the company.
“Given that it’s a harbour, an industrial-related area, we have to assume that there is a good level of [insurance] penetration here," Mr Althoff said.
"So from that point of view, I guess you will see this on our major loss list in the third quarter.”
With ships and warehouses also destroyed in the blast, including the huge 120,000-tonne grain silo, claims in Beirut port are expected to reach $250m, a specialist insurer said.
Reinsurance broking company Guy Carpenter said its vessel-tracking data showed 10 ships were within 1.6km of the blast.
“We expect those vessels would have incurred damages,” the broker said in a report.
“Many other vessels were within a radius where sporadic damage may have occurred.”
Swiss Re estimated the insured losses would be similar to those from the Tianjin blast in China in 2015, which cost up to $3.5bn, with at least 116 deaths.
But the major insurance companies still believe it is too soon to give an accurate estimate on the disaster.
“We are, however, focused on doing everything we can to support our customers and policyholders following this deeply tragic event,” said Lloyd’s of London, another leading reinsurer.
One commentator for the Artemis insurance intelligence company said it would take some time to calculate the broader financial impact.
“A low billion US dollar industry loss won’t be significant for anyone in the industry, with the local impacts to insurers likely the most detrimental to the reinsurance sector,” he said.
The commentator said the deep market was proving its worth to homeowners and others around the world.
“This once again highlights the need for greater penetration of insurance into poorer economies of the world,” he said.
F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
UAE currency: the story behind the money in your pockets
Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
ENGLAND SQUAD
Goalkeepers: Jack Butland, Jordan Pickford, Nick Pope
Defenders: John Stones, Harry Maguire, Phil Jones, Kyle Walker, Kieran Trippier, Gary Cahill, Ashley Young, Danny Rose, Trent Alexander-Arnold
Midfielders: Eric Dier, Jordan Henderson, Dele Alli, Jesse Lingard, Raheem Sterling, Ruben Loftus-Cheek, Fabian Delph
Forwards: Harry Kane, Jamie Vardy, Marcus Rashford, Danny Welbeck
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
The specs: 2018 Mercedes-Benz E 300 Cabriolet
Price, base / as tested: Dh275,250 / Dh328,465
Engine: 2.0-litre four-cylinder
Power: 245hp @ 5,500rpm
Torque: 370Nm @ 1,300rpm
Transmission: Nine-speed automatic
Fuel consumption, combined: 7.0L / 100km
The National Archives, Abu Dhabi
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
A little about CVRL
Founded in 1985 by Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, the Central Veterinary Research Laboratory (CVRL) is a government diagnostic centre that provides testing and research facilities to the UAE and neighbouring countries.
One of its main goals is to provide permanent treatment solutions for veterinary related diseases.
The taxidermy centre was established 12 years ago and is headed by Dr Ulrich Wernery.
'Nightmare Alley'
Director:Guillermo del Toro
Stars:Bradley Cooper, Cate Blanchett, Rooney Mara
Rating: 3/5
The specs: 2018 Harley-Davidson Fat Boy
Price, base / as tested Dh97,600
Engine 1,745cc Milwaukee-Eight v-twin engine
Transmission Six-speed gearbox
Power 78hp @ 5,250rpm
Torque 145Nm @ 3,000rpm
Fuel economy, combined 5.0L / 100km (estimate)
How much do leading UAE’s UK curriculum schools charge for Year 6?
- Nord Anglia International School (Dubai) – Dh85,032
- Kings School Al Barsha (Dubai) – Dh71,905
- Brighton College Abu Dhabi - Dh68,560
- Jumeirah English Speaking School (Dubai) – Dh59,728
- Gems Wellington International School – Dubai Branch – Dh58,488
- The British School Al Khubairat (Abu Dhabi) - Dh54,170
- Dubai English Speaking School – Dh51,269
*Annual tuition fees covering the 2024/2025 academic year
Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
David Haye record
Total fights: 32
Wins: 28
Wins by KO: 26
Losses: 4
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
if you go
The flights
Air Astana flies direct from Dubai to Almaty from Dh2,440 per person return, and to Astana (via Almaty) from Dh2,930 return, both including taxes.
The hotels
Rooms at the Ritz-Carlton Almaty cost from Dh1,944 per night including taxes; and in Astana the new Ritz-Carlton Astana (www.marriott) costs from Dh1,325; alternatively, the new St Regis Astana costs from Dh1,458 per night including taxes.
When to visit
March-May and September-November
Visas
Citizens of many countries, including the UAE do not need a visa to enter Kazakhstan for up to 30 days. Contact the nearest Kazakhstan embassy or consulate.
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At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
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