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US-attacks-insure-S&P
Insurers face US$17.5b losses from U.S. attacks in US: S&P
JP/10/Insure

PARIS (AFP): Leading insurers and reinsurers are facing total
losses of at least US$17.5 billion from the terrorist attacks in
the United States, according to credit rating agency Standard &
Poor's.

"To date, leading insurers and reinsurers have accumulated net
aggregate insured losses of $17.5 billion," S&P said in a
statement Thursday.

"The total loss figure could rise significantly," it said.

S&P lowered and placed on negative credit watch its ratings on
two insurers with exposure to last week's losses at the destroyed
World Trade Center: Lloyd's of London and Zurich Insurance
company.

The financial strength rating on Lloyd's was lowered to "A"
from "A-plus." For Zurich Insurance, its counterpart credit
rating was lowered to "AA" from "AA-plus/negative" and its
financial strength rating was cut to "AA" from "AA-plus".

At the same time S and P also placed its ratings on an
additional 15 insurance groups on credit watch with negative
implications.

The agency reiterated that total industry losses would have to
exceed $50 billion before it would worry about a substantial
number of insurers' claims-paying ability being compromised.

Separately, the world's two largest reinsurance companies said
Thursday that last week's terror attacks in New York will produce
far and away the largest claims they have ever faced, doubling
their previous estimates to $3.2 billion.

Munich Re, the largest reinsurer, said this year's damage
claims from the U.S. terrorist attacks could cost it 2.1 billion
euros ($1.95 billion) before tax.

In Zurich, Switzerland, Swiss Re said the strikes will have an
after-tax effect of around 2 billion Swiss francs ($1.25 billion)
in the current year - about two thirds of 2000's annual profit.