UK insurers' financial strength ratings will be unaffected by losses from the recent rioting, according to rating agency Fitch.
The agency added that while it believes insurance pricing may rise in loss-affected areas, the riots would not trigger major price changes across the UK.
Fitch pointed out that the true cost of the riots may not be known for months,but that the ABI had estimated that losses would exceed £100m.
"At current loss estimates, Fitch believes the industry as a whole will be able to absorb these losses into earnings," said Chris Waterman, managing director in Fitch's insurance group, in a statement. "Ratings of insurance companies will be affected if economic costs impair balance sheet strength and at this moment that seems unlikely."
The agency added, however, that it recognised the situation is still fluid and would continue to monitor events.
Fitch said the policies most likely affected during the riots are residential property, motor, commercial property, and business interruption. It said business interruption costs would be the most difficult to gauge.
The agency noted that while insurers may be able to recoup some costs from the UK government through the Riot (Damages) Act of 1886, this covers only property damage and not business interruption.
