Global insurers are well-capitalized to absorb the hit from rising claims and costs related to the COVID-19 pandemic, ratings agency A.M. Best Co. Inc. said on Monday, citing a stress test it conducted to gauge the immediate impact of outbreak on insurers' financial strength.

A.M. Best said most rated insurers and reinsurers performed well in its stress test and their capital levels provided an adequate buffer against a potential shock to their balance sheets.