Shares in re-insurance giant Munich Re fell by 4.63 percent to 111.35 euros, and Allianz was off by 2.12 percent to 99.84 euros, while the DAX index of German blue chips was off by 0.92 percent overall.

Shares in Hannver Re, the world's third biggest re-insurance group were 4.12 percent lower at 39.12 euros, while the MDax index on which they are listed was off by 0.95 percent.

The intense 8.9 magnitude quake struck off the Japanese coast and was followed by heavy aftershocks and a tsunami.

Japanese media have reported deaths and say some people are missing, along with major damage and fires on the heavily developed islands.

The Pacific Tsunami Warning Center, west of Honolulu, Hawaii, issued a widespread warning extending across virtually the entire Pacific Ocean, including Australia, Antarctica and South America.

Hawaii is some 4,000 miles east of the epicenter of Friday's earthquake.

On Thursday, Munich Re, the world's biggest re-insurance company, said that the deadly Christchurch earthquake in New Zealand on February 22 would cost it about one billion Australian dollars (726 million euros, $1.0 billion).

Munich Re had stuck to its 2011 profit target but warned that "it will only be able to achieve this target if random major losses remain below the average level to be expected in the further course of the year.