Global insurers such as AIG and Allianz with strong diversified business lines are better placed than their smaller rivals to respond to economic slumps and other challenges, according to Standard and Poor’s (S&P).

The ratings agency classifies such groups as multiline insurers with capital adequacy rated as strong, very strong or extremely strong.

“On average [global multiline insurers] display stronger capital adequacy and operating performance than the global insurance sector average,” S&P says.

Having a diversified earnings base means a business is not dependent on one market.

“Global diversification pays off for [global multiline insurers] here, since few groups, including those with market-leading positions in their domestic market, are overly exposed to a single market or region.

“We believe top-market positions, geographic and product diversification, and usually very strong capital positions allow [these insurers] to bear interest rate risks better than less diversified insurers.”

The 13 global multiline insurers identified by S&P are Aegon Group, Allianz, AIG, Aviva, Axa, Chubb, MetLife, Prudential Financial Group, Prudential PLC Group, QBE, Tokio Marine, XLIT and Zurich.