Weiss: Insurer Failures Fell By Nearly Half In ?04
NU Online News Service, Jan. 10, 2:40 p.m. EST?The number of U.S. insurer insolvencies went down sharply in 2004, falling 48 percent to just 13 failed companies compared to 25 insolvencies in 2003, according to a new report.[@@]
The Weiss Ratings Inc. said that in 2004, 10 property-casualty insurers and three life-and-health insurers became insolvent. In comparison, 21 p-c insurers and four life-and-health insurers failed in 2003.
Melissa Gannon, vice president of Jupiter, Fla.-based Weiss, noted that insurers have been reporting robust profits for several quarters now, reflecting both an improved securities market and economic growth. These improved earnings are resulting in fewer company failures, Ms. Gannon observed.
The 10 failed p-c insurance companies in 2004 were:
? MIIX Insurance Co. in Lawrenceville, N.J. (Total assets at the time of failure: $813 million.)
? Interboro Mutual Indemnity Ins. Co. in Mineola, N.Y. (Total assets at the time of failure: $58.4 million.)
? Statewide Insurance Co. in Waukegan, Ill. (Total assets at the time of failure: $33.1 million.)
? Cascade National Ins. Co. in Seattle. (Total assets at the time of failure: $27.3 million.)
? American Superior Insurance Co. in Plantation, Fla. (Total assets at the time of failure: $13.5 million.)
? Cumberland Casualty & Surety Co. in Tampa, Fla. (Total assets at the time of failure: $12.1 million.)
? New America Insurance Co. in North Lauderdale, Fla. (Total assets at the time of failure: $10.9 million.)
? State Capital Insurance Co. in Lawrenceville, N.J. (Total assets at the time of failure: $8.7 million.)
? Pinnacle Casualty Assurance Corp. in Montgomery, Ala. (Total assets at the time of failure: $3.4 million.)
? Carrol County Mutual Fire Ins. Co. in Westminster, Md. (Total assets at the time of failure not available.)
All of the companies had "C-minus" (fair) or less ratings by Weiss at the time of failure.
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