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News Focus - Fitch says new catastrophe risk an-alysis ups capital needs by 5-15%.

Europe Intelligence Wire

| June 01, 2006 | COPYRIGHT 2006 Financial Times Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

(From Reinsurance)

Insurers with catastrophe exposures are facing a possible 10% increase in their overall capital requirements, according to a new report from Fitch Ratings.

The Fitch report is a follow-up on the special report published by the company on catastrophe risk and capital requirements in November 2005. In the report, Fitch states it is projecting a 10% average increase in overall capital requirements for insurers with catastrophe exposures, with the projected range of required capital increases expected between 5-15%. According to Fitch, these include an estimated 40-65% increase in "capital needed to support catastrophe risks" relative to what has been held in the past.

According to the report, Fitch estimates that adopting its T-VaR approach results in "capital required to support catastrophe risk" increasing by approximately 0-30%, which ...

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