On October 7, 2009
Resurgent Competition Likely to Cut Property Insurers’ Profits
Last weekend Barron’s was singing the praises of insurers like Chubb, Travelers and Ace, pointing out their low price to earnings multiples and the prospect of a 20 percent increase in their stock prices over the next year. But the reality is that they, and other property casualty insurers, may have already seen their best days for a while. Let’s begin with the bulls. Third quarter earnings are likely to look a lot better than last year. As for the remainder of 2009, the hurricane season should end around November 30 with a storm-less season, at least here in the U.S., meaning that payouts for wind damage will be minimal in a quarter that’s traditionally the highest. The stock and credit…
0 Comments