Investors are more tolerant of earnings volatility among reinsurers than primary insurers, a reinsurance brokerage study has found.

Aon Re Global, a subsidiary of Chicago-based Aon, said 2005 catastrophes–especially Hurricane Katrina–provided an opportunity for analysts to review the investors' response to the related earnings and capital volatility.

"Katrina is the first significant natural catastrophe since Northridge and Andrew to truly test the risk and capital management plans of insurers and reinsurers," said Mike Bungert, chief executive officer of Aon Re Inc.

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