S&P: Chinese insurers to withstand pressures

Standard & Poor's said that while the profitability of some Chinese insurers will take a slight hit from underwriting losses related to the recent snowstorms in China, the credit profiles of most companies should withstand the pressure.

The agency suggested in a report that loss ratios in 2008 are likely to dip just a few percentage points due to the storms and reiterated its positive outlook on the sector.

Operators most likely to be affected by the snowstorms include the three biggest players, PICC group, Ping An Insurance (Group) Co. of China Ltd. and China Pacific Insurance (Group) Co. Ltd. and others that also have high exposure to motor insurance and to the worst-affected regions, the agency said.

According to S&P, the China Insurance Regulatory Commission estimates aggregate snow-related claims at about RMB 3.5 billion.

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