A.M. Best composite index shows virtually no gain in first-quarter 2007.Among the 14 regional and sector-specific indexes comprising A.M. Best's Global Insurance Composite, the U.S. Multi-Line Index lost the most value in the first quarter of 2007 when compared to the previous quarter. The U.S. Multi-Line Index was down more than 5%, reflecting volatility in the stocks of some of the nation's largest multi-line insurers. American International Group
American International Group, Inc. (AIG) (NYSE: AIG; TYO: 8685 ) is a major American insurance corporation based in New York City. , with its huge market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. and 64% weighting on the index, saw its stock down 6.2% at the end of March, compared with the closing price at the end of the fourth quarter. Also contributing to the decline was Allstate Insurance Group, whose stock fell about 7.8% during the quarter. The Asia/Pacific Index gained the most during the quarter, with a more than 6% rise over fourth-quarter 2006. Asia/Pacific stocks were stronger than the broader market, including currency changes, overcoming the global market meltdown meltdown Occurrence in which a huge amount of thermal energy and radiation is released as a result of an uncontrolled chain reaction in a nuclear power reactor. The chain reaction that occurs in the reactor's core must be carefully regulated by control rods, which absorb that originated from the Shanghai Stock Exchange Shanghai Stock Exchange One of two major securities markets in China. on Feb. 27. On that day, the Shanghai Composite Index Composite Index A grouping of equities, indexes or other factors combined in a standardized way, providing a useful statistical measure of overall market or sector performance over time. Also known simply as a "composite". fell 8.84%, its biggest one-day drop in 10 years. Since then, the stocks of Australia's QBE Insurance QBE Insurance Group Limited ASX: QBE is an Australian based general insurance provider, providing insurance services mainly to the Asia Pacific region, but also America and Europe. It has offices in 44 countries. Group and Japanese insurers Millea Holdings Millea Holdings, Inc. (株式会社ミレアホールディングス , Mitsui Sumitomo Insurance Co. and Sompo Japan Insurance Sompo Japan Insurance Inc. (株式会社損害保険ジャパン have markedly rebounded. The four companies carry a combined weight of about 76% on the Asia/Pacific Index, with Mitsui Sumitomo alone carrying roughly 28%. Overall, A.M. Best's insurance composite index increased 0.09% in the first quarter, while the Dow Jones Industrial Average Dow Jones Industrial Average The best known U.S. index of stocks. A price-weighted average of 30 actively traded blue-chip stocks, primarily industrials including stocks that trade on the New York Stock Exchange. fell 0.87%. John Williams This biographical article or section needs additional references for verification. Please help [ to improve this article] by adding additional sources. Unverifiable material about living persons must be removed immediately, especially if potentially libelous or harmful. , senior business analyst with A.M. Best's analytical services group, said A.M. Best's broadest measure of insurance stocks showed virtually no gain in the first quarter after a strong fourth quarter, moving closely with the Dow. Indeed, all of the regional and sector-specific indexes had a strong fourth quarter, some closing 2006 with double digit Noun 1. double digit - a two-digit integer; from 10 to 99 integer, whole number - any of the natural numbers (positive or negative) or zero; "an integer is a number that is not a fraction" gains. The Global Multi-Line and Europe indexes each climbed by more than 10%. The U.S. Multi-Line Index saw a 7% increase in the fourth quarter. However, in the first quarter of 2007, there were fewer gains. Besides the Asia/Pacific Index, U.S. Life & Health, U.S. Life, and U.S. Health were the strongest performing indexes, showing, respectively, gains of 2.99%, 3.42%, and 2.52%. The U.S. Property/Casualty and Global Multi-Line indexes were down by 1.99% and 1.35% respectively. The slowdown of insurance stocks this first quarter mirrors what many analysts say is a softening in the U.S. economy. As has historically been the case, Williams said, he expects "movements in the broader market to continue to be reflected in the insurance market."
First Quarter 2007 Performance
A.M. Best's Stock Indexes
Quarter Ended March 31, 2007 (Dec. 31, 2004 = 1,000.00)
Percent Change
Index Qtr/
Close Qtr YTD Yr/Yr
AMB vs DOW
AMB's Insurance Composite (AMBG) 1,331.66 0.09 0.09 10.61
Dow Jones Industrial Avg (DJIA) 12,354.35 -0.87 -0.87 11.21
Global and Regional Indexes (Ticker)
Insurance Composite Indexes by Region
United States IAMBUS) 1,251.38 -0.62 -0.62 8.13
Europe (AMBEUR) 1,478.91 0.15 0.15 16.73
Asia/Pacific (AMBAP) 1,490.17 6.74 6.74 4.50
Insurance Indexes by Market Type (Global)
Non-Life (AMBGNL) 1,292.36 0.51 0.51 12.72
Life (AMBGL) 1,393.42 0.86 0.86 7.53
Multi-Line (AMBGML) 1,317.38 -1.35 -1.35 14.24
Reinsurance (AMBGR) 1,338.26 -0.07 -0.07 16.26
Brokers (AMBGB) 1,078.28 0.01 0.01 -0.86
Insurance Indexes by Market Type (U.S.)
Multi-Line (AMBUML) 1,103.18 -5.11 -5.11 5.97
Property/Casualty (AMBUPC) 1,219.56 -1.99 -1.99 13.68
Life & Health/HMO (AMBULH) 1,402.84 2.99 2.99 6.68
Life (AMBUL) 1,449.40 3.42 3.42 13.71
Health/HMO (AMBUH) 1,351.51 2.52 2.52 -0.03
Brokers (AMBUB) 1,053.29 -0.81 -0.81 -2.71
Source: A.M. Best, Dow Jones Indexes
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