Last week's capital conversion at Citigroup, and the downgrades of a number of insurance companies by A.M. Best and Standard & Poors place a new spotlight on this topic. Transparency at insurance companies is typically weak and their balance sheets possess exposure to a range of financial assets that have suffered greatly amidst this market decline: financial institution debt and preferred stocks, and commercial real estate. In most states, a guaranty association handles insurance bankruptcies, but the maximum aggregate benefit for all claims from an individual is often $300,000.
UNDER THE COVERS
Oct 30th 2008
See this article with graphics and related items at http://www.economist.com/finance/displaystory.cfm?story_id=12516997&mode=comment&intent=postTop
Posts
