Hannover Re expects to pay $53.3 million following sinking of oil rig

Hannover Re said it expects to pay EUR 40 million (Cdn$53.3 million) in damages resulting from the sinking of the drilling rig Deepwater Horizon in the Gulf of Mexico.An explosion on the rig, which sank on Apr. 22, resulted in a huge oil spill flowing more than 1,500 metres below where the Deepwater Horizon was wrecked. Eleven workers are missing and presumed dead. The cause of the explosion 50 miles off Louisiana has not been determined.Hannover Re reported that despite the estimated loss, “we remain considerably below our major loss expectancy for the second quarter.”