Based on preliminary assessments from Fitch Ratings, the global reinsurance industry's strong capitalization can absorb expected losses from Hurricane Sandy. Furthermore, Fitch does not anticipate substantive negative rating actions as a result of this event, as a lower level of catastrophe losses posted thus far in 2012 have allowed companies to recover from the record catastrophe losses in 2011.

This comes despite the fact that, due to the scale and complexity of the event, the ultimate level of insured losses remains highly uncertain. In previously published research reports, Fitch’s assessment has been that losses from a single event would need to exceed $60 billion to likely trigger a reinsurance sector outlook revision to Negative from Stable.

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