MEXICO CITY (Dow Jones) -- The strong earthquake that struck
Mexico on Tuesday may trigger 2.07 billion pesos ($162 million) in
payouts for damages to insured property, Mexican insurance
association AMIS said Friday.
The estimate is based on the magnitude of the tremor, which
reached 7.4 on the Richter scale, AMIS said. Had the quake hit a
magnitude of 7.8, as initially reported, then damage estimates
would have been closer to MXN5.60 billion.
The insurance association predicts that 80% of the insured
damages took place in the state of Guerrero, with some damage
claims also expected to arise in the Federal District as well as in
the states of Oaxaca and Puebla.
While a 7.4-magnitude tremor is capable of causing major damage,
the Mexican capital -- the country's economic heart -- escaped
widespread damage.
Major international insurance companies operating in Mexico
include MetLife Inc. (MET), AXA SA (CS.FR) and QBE Insurance Group
Ltd. (QBE.AU).
Home insurance is not common in Mexico, with only mortgage debt
typically covered by policies; just over 31% of homes carry some
degree of insurance linked to a loan. Apart from obligatory
coverage for debt on mortgaged homes, only 4.5% of homes are
insured by their owners.
-By Amy Guthrie, Dow Jones Newswires; (5255) 5980-5177;
amy.guthrie@dowjones.com