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

Posted On: October 30, 2007, 12:17 pm CDT
Posted By: Gill Fin
Comment:
When homes are insured to their actual replacement cost, profit problems go away. When actuary thinks homes are insured to value, and in reality they are not, the result is persistent problems including artificially high premiums. There is usually nothing wrong with the cost per thousand - there just arent enough thousands.
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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