Insurers and reinsurers providing directors and officers liability and errors and omissions coverage could see "manageable" losses from the subprime mortgage collapse that exceed $2 billion, Bank of America reported today.
But, analysts at the bank said, the losses are unlikely to affect projected financial performance for the group.
Reinsurers, the analysts said, will bear less of the loss because many have limited exposure to financial institutions "or have carefully negotiated terms and conditions that will limit their exposures."
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