Despite intensified pricing competition, property-casualty companies with conservative investments should be able to perform well during the credit crunch, according to a Bank of America "P-C Industry Special Report."
Bank of America said p-c companies during the financial crisis are a good "port in a storm," noting that p-c companies currently have no liquidity, capital or investment issues, and that third-quarter mark-to-market losses should be manageable.
The analysis also said valuations are "compelling." Bank of America said that "Travelers and Chubb stand out on the large cap side as having low balance sheet risks, with Travelers being the most attractive stock at 75 percent of book value."
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