Much of the excess capital cushion that reinsurers have used to absorb the shocks of the past year, has been eroded, Standard & Poor's Ratings Services said in a report published today.

And if reinsurers don't raise rates high enough to refill their coffers, they might see ratings downgrades, S&P warned.

The study by the S&P London office is titled "Global Reinsurance: Excess Capital Absorbs The Shock To Date; But There Is Limited Further Margin For Error."

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