The U.S. property-casualty industry's third quarter statutory surplus is projected to decline as much as $42 billion, or 8 percent, from the beginning of the year, a consulting firm estimated.
Towers Perrin said the fall of comes because insurers have been hit by equity and credit-related losses on asset portfolios, hurricane catastrophe losses and a spike in directors and officers liability claims.
Additionally, if the stock market fails to recover from steep losses precipitated in recent weeks by the financial crisis gripping the United States and the world, Towers Perrin said surplus decline could approach $80 billion, or 15 percent, by the end of the year.
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.
