Standard & Poor's Ratings Services said today it will maintain its negative outlook for the global reinsurance sector due to the catastrophic hurricanes of 2005.
"The outlook reflects near-term strains on reinsurers' financial strength, after 2005 saw the largest catastrophe losses in the industry's history," said Standard & Poor's credit analyst Laline Carvalho. "The outlook also indicates that there will be slightly more downgrades than upgrades among rated entities in the near term."
In an article titled "Global Reinsurance 2006 Outlook: Volatile Earnings And Near-Term Capital Strain Dog Sector," S&P said the major hurricanes hitting North America in 2005, Katrina, Rita, and Wilma, caused an aggregate loss between $70 billion and $90 billion for primary and reinsurance companies.
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