Peter Eastwood, President & CEO, AIG Property Casualty, U.S. and Canada

Certain emerging markets show promise. In Brazil, for example, there is a moderate growth of about 4.5 percent; the country has relatively low penetration rates in insurance and is seeing the emergence of a middle class. The result is more business and more insurance possibilities related to those businesses, with more Commercial Lines and Personal Lines opportunities.

We’re going to see a sustained low-interest-rate environment and continuation of a choppy recovery from an economic standpoint. Further events like Superstorm Sandy can incur rate increases in portions of a company’s portfolio along CAT Liability lines, leading to a bit of a slow and steady march toward rate improvement. We are challenged to get a return on our business equal to or great than the cost of the capital we have. As an industry, we’ve got to figure out a way to get there.

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