Three different rating services yesterday said the insurance and reinsurance sector can weather the impact of losses from Hurricane Gustav, and it should not halt rate declines.

A.M. Best Company in Oldwick, N.J., based on early estimates of $2 billion to $10 billion of insured losses, said it does not expect the impact of Gustav "to change the current competitive dynamics facing insurers and reinsurers."

While noting that the losses are considerable in comparison to the overall premiums collected for the coverage of the losses incurred, Best said the insurance and reinsurance markets overall are expected to remain competitive.

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