Insurance claims could top $1 billion in cruise ship accident off Italy

ISOLA DEL GIGLIO, Italy—The grounding of the Costa Concordia cruise ship off the coast of Italy could result in insurance claims of up to $1 billion, analysts say.

In a research note, Joy Fernhough, an analyst at Espirito Santo bank in London, said initial indications suggest the loss could be between $500 million and $1 billion.

Also in a research note, Nick Johnson, an analyst at Numis Securities Ltd. in London, said insured losses could range from $600 million to $800 million.

The cruise ship, which ran aground Friday off Isloa del Gigilio, Italy, after it hit a rock and turned on its side, has insurance coverage in international markets and with protection and indemnity clubs.

The ship's Italian owner, Costa Cruises, is a subsidiary of Carnival Corp. & P.L.C. The ship's captain has been questioned about his role in the disaster.

Six people are known to have died when the ship ran aground and 29 are missing.