Perhaps the best thing that can be said about 2008 is that it is over. The recession that undermined the economy all year long is a vicious one, systematically destroying financial markets, institutions, jobs and confidence--all of which impact the prospects for property-casualty insurer growth and profitability in 2009. However, p-c insurers are standing strong amid general weakness in the overall financial services sector.

Indeed, insurers are making good on their past commitments, and are poised to facilitate the economic recovery to come--particularly if the new president, Barack Obama, comes through with the massive stimulus package he has on the drawing board, which could generate welcome business activity, new infrastructure projects and exposure growth for carriers of many lines.

The global economic meltdown of 2008 has often been likened to the Great Depression, but generally speaking, that analogy is incorrect. Indeed, more than a year-and-a-half into the crisis, employment, wages, prices--even stocks--have held up much better than they did in the 1930s.

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