Despite the record losses terrorism wreaked on the insurance industry since the Sept. 11 attacks on the World Trade Center, the global insurance business not only remains on solid footing with the powerful backing of European and U.S. reinsurance giants but is even proving a magnet for new investment, said Standard & Poor‘s (S&P) in a recently released report.
"With capital-raising initiatives underway, we are confident the industry will not only survive, it will prosper going into 2002," the report cited Don Watson, director of S&P‘s insurance analytics team in New York, as saying. "Depending on new loss activity, we should see a very profitable year in 2002, and 2003 will be well positioned for a profitable performance based on expected rate increases."
