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Homeowners Insurers Not Earning Cost of Capital Despite Rate Increases

National News • October 24, 2007
The countrywide prospective return on equity for the homeowners line of insurance for 2007 is 7.0 percent, up from 5.4 percent in 2006, according to an analysis by Aon Re Global, a unit of Aon ...

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Subject: RoE vs Cost of Capital --- Rate hike indications?

Posted On: October 30, 2007, 1:50 am CDT
Posted By: Shrinivas Shikhare
Comment:
If homeowner insurance cost of capital is higher than RoE, can we expect rate hike in near future to retain capital to the business ? I hope cross-subsidization of product by insurers is not happening here.
Subject Posted By Posted On
RE: RoE vs Cost of Capital --- Rate hike indications? Gill Fin
Oct 30, 2007, 12:17 pm
RoE vs Cost of Capital --- Rate hike indications? Shrinivas Shikhare
Oct 30, 2007, 1:50 am
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