Standard & Poor's Ratings Services said today it willmaintain its negative outlook for the global reinsurance sector dueto the catastrophic hurricanes of 2005.
"The outlook reflects near-term strains on reinsurers' financialstrength, after 2005 saw the largest catastrophe losses in theindustry's history," said Standard & Poor's credit analystLaline Carvalho. "The outlook also indicates that there will beslightly more downgrades than upgrades among rated entities in thenear term."
In an article titled "Global Reinsurance 2006 Outlook: VolatileEarnings And Near-Term Capital Strain Dog Sector," S&P said themajor hurricanes hitting North America in 2005, Katrina, Rita, andWilma, caused an aggregate loss between $70 billion and $90 billionfor primary and reinsurance companies.
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