TAIWAN INSURERS FACE TOUGH REINSURANCE YEAR: S&P.

AsiaPulse News, March, 2002

HONG KONG, March 19 Asia Pulse - Taiwan's property and casualty insurance sector faces a difficult year in 2002 due to hardening rates and structures offered by the global reinsurance market and reduced reinsurance capacity, according to Standard & Poor's.

The resulting negative impact on the financial strength of the sector raises the possibility that Standard & Poor's may have to lower its ratings on some companies, the ratings agency said.

"Subject to a review of each individual company's performance and reinsurance arrangements, rating downgrades are a possibility," said Standard & Poor's associate director, Connie Wong in a statement.

Taiwan's property and casualty insurance industry has historically relied heavily on reinsurance, partly due...