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Moody's: Insurers well capitalized to absorb losses from hurricanes


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Moody's: Insurers well capitalized to absorb losses from hurricanes

Though third-quarter insured catastrophe losses from hurricanes Harvey, Irma and Maria may be among the highest in the last two decades, U.S. property and casualty insurers are "well capitalized" to absorb them, Moody's said.

The rating agency said losses from the three hurricanes would be an earnings event for most of the property and casualty insurers it rates. Some reinsurers may report a loss for the year, with capital depletion in the low- to mid-single-digit percentage range, Moody's said.

The agency said it will take weeks to assess damages from the storms, adding that there was "great uncertainty" surrounding Maria's final losses.

Moody's said Lloyd's of London, which expects losses of around $4.5 billion net of reinsurance, may report a moderate erosion of its market-wide and central Solvency II ratios if it does not take action to raise capital or reduce required capital.