BestWeek: U.S. P/C Earnings Down 87% On Underwriting and Investment Losses.OLDWICK, N.J. -- Underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. and investment losses hit the property/casualty industry hard in the first quarter, so hard that earnings were 87% lower than the results a year earlier, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. an A.M. Best Co. special report that's featured in this week's BestWeek U.S./Canada. The year-over-year comparison shows net income for the quarter at $1.2 billion, compared with $9.4 billion for the first three months of 2008. At the root of those results was net investment income, primarily dividends from stocks and interest on bonds. The $1.2 billion reported compares with $12.3 billion for the same period a year earlier, according to BestWeek. BestWeek Europe takes a looks at Partner Re's decision to snap up its Switzerland-based rival Paris Re in a complex $2 billion (1.4 billion euros) deal that will create a new top-five player in the reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. market. And while equity analysts appear to view the deal positively, at least one warned that events such as hurricane losses and counter-bids could throw it off course. Also, in BestWeek U.S./Canada, California's proposed pay-as-you-drive insurance regulations are winning industry support as they steer closer to the marketplace. First conceived a year ago, at the height of a record surge in gasoline prices, the proposed PAYD PAYD Pay As You Drive PAYD Pay As You Dine (UK armed forces) PAYD Pennsylvania Young Democrats regulations would allow automobile insurers to sell coverage by the mile. Companies would be able to create plans to sell policies based on estimated miles, verified miles and prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. miles.
They would be permitted to offer discounts to drivers who opt to purchase mileage-verification policies. Insurers could verify miles driven through a variety of potential methods, including odometer odometer (ōdŏm`ĭtər), instrument provided in an automotive vehicle to indicate the total number of miles that have been traveled. readings taken by the insurer, an agent or designees; smog check stations; auto repair shops; self-reporting by the policyholder Policyholder An individual who owns an insurance policy. ; or, an electronic device placed in the vehicle, BestWeek said. BestWeek is published by A.M. Best Co. for insurance professionals. To subscribe, please visit www.ambest.com/sales/BestWeek, or e-mail your request to customer_service@ambest.com. Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com. |
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