TAIWAN FIRE & MARINE EXPOSURE TO PLANE CRASH IS LIMITED

Standard & Poor’s rating on Taiwan Fire & Marine Insurance (TFMI) will remain at triple B plus (Stable) despite the 737-800 plane crash on August 20, S&P said yesterday. The agency noted that, although TFMI was the lead underwriter for the plane, its exposure was limited. The net loss was likely to be between 1% and 2% of total shareholder funds plus special reserves as at end of June. This would push up TFMI’s combined ratio by between 3% and 4% for the second half, to about 92%. S&P estimated that the total insurance claim would be between NT$1bn and NT$1.5bn (US$30m to US$45m).