Shares in Autralia's QBE rocketed 52% to A$5.091 (£1.71) on Friday after the insurance company reassured investors that its exposure to the terrorist attacks in the United States would not exceed A$250m (£84.2m).
The rally came after the shares fell 41% to a six-year low of $A3.35 (£1.13) on Thursday, before the Australian Stock Exchange suspended them at QBE's request.
The selling pressure was driven by investors who feared that QBE did not have enough capital to cover its losses in the US attacks.
Chief Executive Frank O'Halloran on Friday reiterated the comments that he had made after the markets closed on Thursday, telling journalists that no how high the cost of the disaster became, QBE's exposure would remain at A$250 million.
O'Halloran said while the cost of the attacks to the industry was expected to be huge, premium rates would rise "substantially" and help QBE produce "better returns in 2002 than we ever anticipated".
