Insured loss for U.S. supply rocket $40-50 mln-sources

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By Carolyn Cohn and Richa Naidu

LONDON, Oct 29 (Reuters) - The unmanned U.S. supply rocket which exploded shortly after lift-off late on Tuesday was insured for around $40 million to $50 million of losses, insurance sources said, though one pinned the loss specifically at $48 million.

The 14-story Antares rocket, built and launched by Orbital Sciences Corp, burst into flames moments after blasting off from the Wallops Flight Facility in Virginia on Tuesday before plunging back to earth in a ball of fire and smoke.

A London spokesman for U.S. insurance broker Willis Group Holdings Plc confirmed on Wednesday it was the broker for the insurance risk, but declined to comment on the size of the insured loss.

Industry sources said the insurance risk was likely shared between firms in the United States and syndicates operating on the Lloyd's of London insurance market.

"Space insurance is provided for the satellite (or in this case the capsule) that is carried by the rocket, not the rocket itself," said one aviation underwriter, who declined to be named.

The estimated insurance loss compares with around $100 million for the vanished Malaysian Airlines MH370 passenger jet, sources added.

Insurers worldwide will have to pay up to a record $800 million to cover damage done by attacks on airplanes this year, driving up prices. (Editing by David Holmes)