TEXT-Fitch says Hurricane Isaac losses manageable for U.S. insurers

(The following statement was released by the rating agency)

Sept 10 - With estimates among catastrophe modeling firms ranging from $0.5 billion to $2 billion, losses from Hurricane Isaac are expected to be material but manageable for primary insurers located in the U.S. and the global reinsurance industry, according to Fitch Ratings in a new report. 'If actual losses from Hurricane Isaac end up within current ranges, primary insurers will bear most of the loss,' said Associate Director Chris Grimes. 'However, as incurred losses rise, the chances of losses being allocated to the reinsurance industry increase.' Given that the overall industry entered the hurricane season with a favorable capital position, it is unlikely that many insurers will require significant capital-raising activity to offset losses from Isaac and additional inland storms which emerged earlier in 2012. Hurricane forecasting organizations generally expected 2012 to generate a below-average number of storms along the Atlantic and Gulf Coasts. As the year has progressed, forecasts for hurricane activity have been revised upwards towards an average to above-average season. (Caryn Trokie, New York Ratings Unit)