Standard & Poor's said it is retaining its stable outlook for the insurance industry, saying renewal of the Terrorism Risk Insurance Act (TRIA) ensures underwriters have a true backstop in place for any catastrophic loss that threatens its solvency.
The New York-based rating agency had said Dec. 8 it was prepared to revise the industry's rating down to negative if Congress did not pass an extension. The president signed the two-year extension Dec. 22.
S&P said a terror attack–especially one involving nuclear, biological, chemical or radiological (NBCR) devices–resulting in a significant loss of $200 billion could threaten the solvency of some insurers and "significantly" reduce capital for the commercial lines.
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