LONDON--(BUSINESS WIRE)--As the U.K. House of Lords considers legislation that would establish a national flood reinsurance program, and the country’s property insurers are handling a fresh onslaught of claims from the most recent flooding catastrophe, a new briefing from A.M. Best states that it does not expect an increase in rating downgrades.
The Best’s Briefing entitled, “U.K. Insurers to Withstand Flood Losses; Long-Term Safeguards Are Sought,” states that while current estimates set the insured losses at between GBP 750 million and GBP 1.2 billion, A.M. Best expects insurers to withstand these losses, with little effect on ratings, given the overall soundness of their business and capital strength.
Stefan Holzberger, managing director, analytics and author of the briefing said, “Despite the marginal returns expected for 2013, A.M. Best does not expect an increase in rating downgrades for two reasons: Many U.K. insurers have international business that performed well in 2013, given generally adequate rates and relatively few major catastrophes; and second, insurers have strengthened their balance sheets over the past few years and currently maintain sound capital buffers that exceed requirements for their current rating levels.”
To access the full, complimentary copy of this briefing, please visit www.ambest.com/press/032402ukfloodbriefing.pdf.
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