BestWeek: Credit Turmoil Impacts Insurance Market

Turmoil in the credit markets could leave policyholders in limbo if a major hurricane strikes the United States this year, as investors show a limited appetite for capital market offerings designed to raise cash for claims payments, according to a new special report featured in BestWeek U.S./Canada.

Meanwhile, the same subprime mortgage crisis that rocked the credit markets raises questions about insurers’ exposure to foreclosed and abandoned properties in hurricane-prone states.

Also, in BestWeek U.S./Canada:

Four property/casualty companies became impaired in 2007, for an impairment rate of 0.12%—or one in 833 companies, according to a new A.M. Best special report, “U.S. Property/Casualty—1969-2007 Impairment Review.”

Also, in BestWeek Europe:

India’s insurance market long has been seen as one of the more promising areas opening up for new business in Asia. The downside is the subcontinent is facing increasing loss experience.

And in both editions of BestWeek:

The Best’s Global Insurance Composite Index finished the week of May 15 down 14.68% from a year ago. The composite index reflects the performance of 168 insurance stocks. The week’s top stocks were China Insurance International Holdings, CNA Financial, LIG Insurance Co., Meritz Fire & Marine Insurance Co., and Hyundai Marine & Fire Insurance Co.

The bottom five stocks were Atlantic American Corp., American International Group, FBL Financial Group, Eastern Insurance Holdings, and Hiscox.

BestWeek is published by A.M. Best Co. for insurance professionals. To subscribe, call A.M. Best’s customer service department at (908) 439-2200, ext. 5742, or e-mail your request to customer_service@ambest.com.