Filed Under:Markets, Reinsurance

S&P: Sandy Would Need to Be $50B Event to Erode Reinsurers' Capital Base

A fire destroyed more than 50 homes in the Breezy Point section of the Queens borough of New York during Superstorm Sandy. (AP Photo/Mark Lennihan)
A fire destroyed more than 50 homes in the Breezy Point section of the Queens borough of New York during Superstorm Sandy. (AP Photo/Mark Lennihan)

Industry losses from Sandy would need to reach $50 billion in order to materially erode reinsurers’ capital base, according to a Standard & Poor’s analysis.

While most current estimates fall at or below $20 billion, S&P says there is still much uncertainty. For example, the ratings agency says some market participants believe loss amounts could be 30-50 percent higher than estimated due to insurers’ inability to enforce hurricane deductibles in some states.

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