View this article online: https://www.insurancejournal.com/news/international/2012/12/11/273449.htm
A report from Standard & Poor’s Ratings Services notes that “despite uncertainties regarding final loss totals from Hurricane Sandy expects only a limited ratings impact on insurers and reinsurers exposed to such losses.”
According to the report, “Hurricane Sandy Brings Unexpected Risks But Limited Credit Impact For (Re)Insurers,” published Dec. 7, 2012, on S&P’s RatingsDirect site, “Hurricane Sandy could upend some previous beliefs regarding catastrophe losses. First, assumptions about automobile-related losses were more benign than the actual losses from Sandy’s flood-related damage. Also, basis risk for nontraditional reinsurance products such as industry loss warranties may have been underestimated.”
Credit analyst Jason Porter stated: “We expect losses to reduce the (re)insurance industry’s 2012 earnings, but not to impair industry capita. We will continue to monitor loss information as it becomes available to determine if any companies deplete both annual earnings and at least 5 percent to 10 percent of capital, at which point we may reevaluate our ratings.”
Source: Standard & Poor’s