There is no doubt that 11 September was the largest catastrophe that has hit the markets (estimated at $40-50bn (£25.5-31.9bn) of which 50% is reinsured). Prior to 11 September the largest catastrophes were natural ones in the form of Hurricane Andrew and the Northridge Earthquake($15-20bn)(£9.5-12.7bn).
With the size of the 11 September loss, the US economy in recession and a soft market , the financial strength and stability of a number of the insurance companies involved suffered. The financial rating agencies paid particular attention to those companies that were financially exposed to the 11 September loss. Standard & Poors, for example, downgraded a number of such companies.
