The vast majority of the insurers and re-insurers that rated by Fitch, the international rating agency, will be able to absorb any losses without material damage to their financial positions.

The rating agency says insolvencies should be limited to smaller insurers or re-insurers that are faced with undue risk concentrations. The agency does not believe insolvencies are imminent, but given the likely magnitude of losses, they can not be ruled out.

Fitch will be in discussions with the property/casualty and life/health insurers and reinsurers to determine if losses from the terrorist attacks on the World Trade Center and Pentagon will have a material effect on their ability to pay claims or meet debt service obligations.

The review will include primary insurers in the United States, and reinsurance companies world-wide that assume U.S. exposures.

Based on various preliminary reports, Fitch believes that the insured losses from these events could ultimately prove to be the largest in history. Early estimates peg property/casualty-related losses as high as US$20 billion to US$30 billion, which, in and of themselves, would exceed the US$16 billion of losses from Hurricane Andrew in 1992, which, to date, is the largest insured loss from a single event. Further, there will likely be several billion dollars worth of claims to life/health insurers on life insurance policies and accident and health policies.