Fitch Ratings does not expect the April 20 earthquake in China to have a significant impact on Chinese insurers' financial performance or solvency position.

While claims statistics and losses are still developing, initial claim figures from several insurance companies and the insurance regulator suggest the losses on an incurred basis from the catastrophe are manageable and will not trigger market-wide solvency issues for Chinese insurers.

Fitch believes claims will escalate, but the accumulated incurred losses are unlikely to substantially exacerbate the underwriting margin of major non-life insurers such as PICC Property and Casualty Co. and Ping An Property and Casualty Co., which are in the Sichuan province.

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