Eight Insurers Which Stand to Gain from AIG's Pain

The Travelers Companies Inc. (TRV) and ACE Ltd. (ACE) are among the names that could benefit most from AIG’s credit woes as they are its biggest competitors in the large industrial risk, excess and surplus, and directors and officers liability markets. XL Capital Ltd. (XL) is also in the group of competitors that should be able to gain market share across many of AIG’s product lines, but others could also feel some pain, Goldman Sachs analyst Thomas Cholnoky told clients.

He upgraded Travelers and ACE to “buy” from “neutral” given their strong balance sheets, broad market presence, strong credit ratings and favorable valuations. His price targets move up to $67 and $57, respectively.

Mr. Cholnoky said The Chubb Corp. (CB), Geico and The Progressive Corp. (PGR), which cater to the high net worth market, could also benefit. Meanwhile, MetLife Inc. (MET), Hartford Financial Services Group Inc. (HIG) and Prudential Financial Inc. (PRU) are among the “well-capitalized domestic insurers with strong institutional platform” that could also grab some market share.

Comments

[RonA:]

former Met Life President Freddie Ecker is spinning in his grave! He always felt that Metropolitan had no right to invest money in the stock market. Their exposure seems to be minimal but as a retiree I am nonetheless concerned. The pundits are looking around for someone to blame for the current mess. Is this whole debacle the result of deregulation?

2008 Sep 18 06:56 AM

[10Q Detective:]

Good call on ACE, for it has managed to sidestep the financial meltdown befallen competitor AIG.

blogs.bnet.com/secdocu...

2008 Sep 18 02:40 PM

[granger:]

MKL too

2008 Sep 21 12:14 PM