In Florida, however, after hurricanes swept through the state last year, rate increases were between 20- and 25 percent. He said the losses from Katrina would mean increases above the 20-to-25 percent mark, but S&P is not certain the increases would approach 9-11 numbers.

Simon Marshall, a credit analyst for S&P, said the pressures on the reinsurance industry from the hurricane losses would likely induce a hard market in that sector. Increased frequency of large loss events, the ability to raise new capital, availability and affordability of retrocession coverage, and difficulty to model catastrophe events are some of the concerns that have lead to a negative outlook in this sector.

Downgrades, he said, may result if there are more loss events or estimates are off. However, strong performance could result in a stable outlook later on.

Mr. Margarelli, further discussing global reinsurance, said the combination of the hurricanes striking the U.S. and the record number of typhoons hitting Japan "has surprised the industry."

"The key issue is whether the industry can increase premiums...to charge for the increasing probability of higher losses," he said.

In the personal lines area, Polina Chernyak, an S&P analyst, said increases are expected to be regional in nature and could run anywhere from 10-to-30 percent, especially in Louisiana and Mississippi.

On the commercial side, John Iten said commercial property would see a hard market as a result of the hurricanes, after significant softening.

Mr. Iten would not speculate on how much the increase would be, but said the hardening would be better if it were national instead of regional.

S&P analysts said, while most carriers will be able to absorb losses from the two storms, it has put 13 companies on Credit Watch. The 13 will need to recapitalize their losses through investors, and analysts said they have not seen any indications that the carriers will have problems doing so.

One of the carriers, Montpelier Re Holdings Ltd., is to be removed after obtaining $600 million in recapitalization.

Today, Oil Insurance Ltd., which is on S&P's Credit Watch, had its long-term counterparty credit and financial strength rating lowered to "A-minus" from "A-plus."

PXRE Corp., also on Credit Watch, suffered the same lowering on PXRE Reinsurance Ltd. and PXRE Reinsurance Co. The company said it plans to raise $475 million through investors.

A.M. Best also issued a series of downgrades to the company, lowering PXRE Group financial strength rating from "A (Excellent)" to "A-minus (Excellent)," and its issuer credit rating from "a" to "a-minus." The downgrade also affects other segments of the company. The rating remains under review with negative implications.

The other companies on Credit Watch include:

o ACE Ltd.

o Allmerica Financial Corp.

o Allstate Corp.

o Society of Lloyd's

o State Farm Mutual Automobile Insurance Co.

o Swiss Reinsurance Co.

o United Fire Group

o XL Capital Group

o Transatlantic Reinsurance Co.

o IPCRe Ltd.

In other hurricane-related news, Hamilton, Bermuda-based White Mountains Insurance Group, Ltd., said its losses from Hurricane Rita would be less than $25 million pretax. With Katrina, total net losses are estimated to be between $175 million and $325 million, or $115-to-$215 millon after taxes.