For Immediate Release
Chicago, IL – December 8, 2009 – Zacks.com announces the latest Industry Outlook. Today, Zacks Equity Research discusses the Insurance Industry, including AIG (AIG), PartnerRe Ltd. (PRE), Nymagic Inc. (NYM), The Travelers Companies, Inc. (TRV) and United America Indemnity, Ltd. (INDM).
A synopsis of today’s Industry Outlook is presented below. The full article can be read at http://www.zacks.com/stock/news/28003/Insurance+Industry.
The turmoil in the financial markets has created a highly challenging environment for the U.S. insurance industry, forcing many companies to take immense write-downs. This trend is expected to continue at least through the first half of 2010, though there are some early signs of an economic recovery. Also, structural economies of scale have pushed the industry toward consolidation.
While enormous financial support from the government rescued AIG (AIG) from collapsing, many other firms remain under tremendous pressure or have not been able to survive. Competition within the segments of the industry has reduced as a result of rising mergers and acquisitions. This has increased the market shares of the largest firms.
We expect growth to be stuck with persistent soft market conditions and an ongoing market crisis, resulting in further consolidation in the industry. However, we expect the overall condition to improve in the second half of 2010, should an economic recovery accelerate.
We remain positive on reinsurer PartnerRe Ltd. (PRE) due to its excellent underwriting abilities, strong capitalization, solid ratings and reputation in the market, which will enable it to take advantage of the stronger demand and better pricing being witnessed currently. We also have strong Outperform ratings on Nymagic Inc. (NYM), The Travelers Companies, Inc. (TRV) and United America Indemnity, Ltd. (INDM).
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