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Wednesday, 6 May 2009

Capital base of insurance firms under stress

The capital bases of a number of regional insurance companies are under pressure due to the steep decline in the value of their investment portfolios, says credit rating agency Standard and Poor's (S&P).

The decline has been caused in particular by the fall in the value of local stocks and real estate, Kevin Willis, Director of Financial Institutions Rating Services, told Emirates Business.

"Six regional insurance companies have been put on the negative outlook list due to the strong pressure on their capital base caused by their high exposure to the local stock and property markets," he said.

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