GROWTH PROSPECTS IN ASIAN INSURANCE MARKETS HIT BY CATS

The growth prospects for the nonlife insurance sectors in several Asian markets have taken a knock, according to rating agent Standard & Poor's. Severe natural disasters and diverging economic forecasts have affected the growth prospects for several Asia-Pacific nonlife insurance markets, including Japan and India. "We revised the outlooks on Japan and New Zealand's nonlife markets to negative from stable because we expect the recent earthquakes there to affect earnings and capital strength," said Standard & Poor's credit analyst Paul Clarkson. "We took the same action on India's market due to the likelihood of very poor underwriting performances." On a more positive note, S&P revised the outlooks on China and Malaysia's markets to positive from stable to reflect their strong growth momentum. "We believe the region still has tremendous growth potential despite challenges that include the increasing frequency and severity of natural catastrophes," said Mr Clarkson.