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P/C Insurers' Underwriting Results, Profitability Slip in First-Half 2007

National News • September 25, 2007
The U.S. property/casualty insurance industry's overall profitability as measured by its annualized rate of return on average policyholders' surplus (or statutory net worth) slipped to 13.1 ...

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Subject: Sub-prime Impact : Known Unknown

Posted On: October 3, 2007, 2:01 am CDT
Posted By: Shrinivas Shikhare
Comment:
Even though, P/C Insurers not heavily exposed to sub-prime Residential Mortgage Securities (RMBS) there is going to be impact on insurer's profitability on account of this. Currently sub-prime exposure equal to about 3% - 10% of policyholder surplus, Pure play sub-prime lenders typically purchase low limits of cover.


But exposures like lender's liability coverage (an E&O exposure), D&O may see Class Actions against Mortgage Brokers and Lenders Based on allegations non-suitability and deceptive sales practices. This will have huge impact on commercial line insurers
Subject Posted By Posted On
Sub-prime Impact : Known Unknown Shrinivas Shikhare
Oct 3, 2007, 2:01 am
Play It Again Sam RayGunZap
Sep 28, 2007, 2:29 pm
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