Standard & Poor's said yesterday that insurance companies based in emerging Asian markets are likely to suffer from the financial market volatility caused by the terrorist attacks in the US.
The international credit ratings agency said that Asian insurers' direct claims exposure would be "largely immaterial" but added: " ... the repercussions on profitability and balance sheet strength caused by the increased volatility of financial markets could be significant in the near term."
S&P said the initial response to the attacks had been typical of a time of stress showing a flight to safety, currency volatility and sharp fall in prices across a wide range of securities and commodities.
The agency said Asian insurers' ratings might also suffer if their US-based parent companies incur major claims as a result of the attacks.
