Hannover Re: Deepwater Horizon sinking to result in net loss of $53 million for company

Hannover Re sees $53M net loss from Deepwater rig

BERLIN — Hannover Re AG says the sinking of the Deepwater Horizon oil rig will result in a net loss of around €40 million ($53 million) for the German reinsurer.

The company said Wednesday that it came to that tally “on the basis of a conservative evaluation of the current — still vague — information” about the April 20 explosion that left 11 workers missing and presumed dead and caused the rig to sink 50 miles (80 kilometers) off the Louisiana coast.

The cause of the blast has not been determined.

Reinsurers sell backup coverage to spread the risk in the event of catastrophic claims.