Summary
To date, the property and casualty insurance industry has not experienced the bloodletting that has hit other parts of the financial world. Nevertheless, the property and casualty insurance industry has been negatively affected by the economic downturn as well as the normal soft market cyclicality that has dominated the industry over the last few years. The US property and casualty insurance industry's net income after taxes through nine-months 2008 amounted to $4.1 billion, down 91.8% from $50 billion through nine-months 2007. Insurers suffered $19.9 billion in net losses on underwriting through the first nine months of last year, a $38.3 billion adverse swing from insurers' $18.4 billion in net gains on underwriting through nine months 2007. In an article published by Standard & Poor's late last year and in a subsequent teleconference, S&P executives said it had revised its ratings outlook on the US personal lines insurance sector from stable to negative.
See the full content of this document
Extract
Slip-Sliding Away
Last year, banks, investment firms and other financial institutions - not to mention the U.S. auto industry - sat on a financial fault line perilously close to total annihilation until the federal government stepped in. How government loans and bailouts will work to steady a faltering economy is anyone's guess.
To date, the property and casualt...See the full content of this document
Sponsored links
