Property Insurers Continue to Look Good, But for How Long?
Third quarter earnings continue to sizzle for the earliest reporting insurers, but the news isn’t all optimistic. The mountain air seems to agree with Ace, which moved to Switzerland in 2008. Operating earnings were up 39 percent, topping $700 million. But pressed by analysts on its earnings conference call, a somewhat different picture emerged. CEO Evan Greenberg, son of the legendary Hank Greenberg who once held that position at American International Group, presented a cautious outlook. “The industry runs through cycles and the cycles haven’t gone away,” the younger Greenberg told analysts. “In booking 2008 and 2009 business, the industry was deficiently underpricing its products.” In plain terms, Evan Greenberg reiterated what most other smart insurers have already said. Companies…
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