Moody’s report says insurers and reinsurer have reserves
Moody's Investors Service says Chilean insurers and reinsurers will be abel to cope with losses from the earthquake, Dow Jones reports.
Reserve funds carried on balance sheets of most firms to protect against catastrophes have left local insurers "well-prepared to face the aftermath," the agency said. Ample use of reinsurers will also help mitigate the impact.
The Chilean Insurance Association estimates insured losses to be just $2.6bn.
"Even if insured losses are at the top end of modelling firms' current range, we believe that the majority of reinsurers should be able to comfortably absorb incurred losses within their first-quarter earnings," Moody's said.
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