Six reasons to short Goshawk

MUNICH (AFX) - Muenchener Rueckversicherung AG said it now estimates
Hurricane Katrina alone caused insured losses of some 45 bln usd for the entire
sector.
It said however that natural catastrophes will continue to be insurable,
"assuming that prices and conditions keep pace with the increase in insured
risks."
"Munich Re is gearing its business more than ever to the new risk situation
and to these enormous potentials, as we recognise the additional business
opportunities they offer," management board member Torsten Jeworrek was quoted
as saying in a company statement.
"We will take advantage of the business opportunities but, in doing so, will
only accept risk-adequate prices and conditions," he added.
The company said even before Hurricane Katrina occurred, scientific studies
had led Munich Re to expect an elevated risk situation in the North Atlantic.
But Munich Re also now needs to adjust its risk model again, given the
exceptional losses from the tsunami-like storm surge along the coasts of
Louisiana and Mississippi as well as the leap in the price of construction
materials, wages for craftsmen and fees for loss surveyors.
marilyn.gerlach@afxnews.com