Cost of riots unlikely to affect market rates

Fitch Ratings has predicted that the losses from the recent rioting across the UK will have no impact on UK insurers' ratings.

Although the ultimate economic and insured costs of the riots that have affected Greater London and other areas for the past several days will not be known for months, the Association of British Insurers estimates insured loss damages will exceed £100m.

"At current loss estimates, Fitch believes the industry as a whole will be able to absorb these losses into earnings," says Chris Waterman, managing director in Fitch's Insurance Group.

"Ratings of insurance companies will be affected if economic