Insurers, Reinsurers Face Heavy Losses From Japan Quake |
| Wall Street Journal - Mar 14, 2011 |
Japan's devastating earth quake will result in losses that will rank among the largest in history for insurance and reinsurance companies worldwide, two major rating agencies said Monday.
However, Moody's Investors Service Inc. and Fitch Ratings added that time is still needed to assess the full extent of Friday's natural disaster.
"Estimating claims will be a protracted process, as the size and scope of the event will place significant strain on insurers' claims adjustment resources," the Moody's report said, adding subsequent aftershocks in the weeks ahead could cause additional losses.
Fitch said it doesn't expect any major ratings downgrades for insurance and reinsurance companies, as these industries should be able to absorb losses without widespread solvency problems or undue financial strain.
However, among the two types of companies, primary insurers are more vulnerable and could be downgraded one or more notches if loss estimates escalate, Fitch warned.
Read Full Article from Wall Street Journal
- Posted: 2011-03-14 09:35:51
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