At least $14 billion in losses have been accumulated by 55 leading insurers and reinsurers after the World Trade Center (WTC) disaster, Standard and Poor's (S and P) said Wednesday.
The global ratings agency said in a statement it was likely to put insurers and reinsurers on credit watch with negative implications after the World Trade Center was demolished by terrorists who crashed two airliners into the New York landmark on September 11.
"Net aggregate insured losses of $14 billion have been accumulated from 55 leading insurers and reinsurers, based both on confidential information provided to Standard and Poor's and publicly available information," it said.
"This figure is likely to rise significantly once better estimates become available," S and P added.
In an earlier comment, S and P said once losses exceeded $15 billion, it would expect to see a "significant impact" on balance sheets of individual insurers.
"Totals would have to exceed $50 billion before Standard and Poor's would begin to worry about the insurance system", said Rob Jones, director at S and P's Financial Services group in London.
S and P said in the next few days it will further investigate the available claims estimates from these leading insurers.
"Many of these companies have substantial financial flexibility and capital strength and are expected to have their ratings affirmed," it said.
"Given some initial estimates of loss, however, Standard and Poor's believes a significant number of these companies are not as well positioned to absorb these exposures and are likely to receive ratings downgrades," it added -- SINGAPORE (AFP)
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