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After AIG: Which Insurer Is Next in Line for a Federal Handout?

PRU is next

ING and AEG are not in such great shape (each has substantial US buysiness), and have received funds from their parent-domicile government.

MFC (Manulife) was unhedged on its variable annuities and lost it's AAA rating


Just like investment banks looking for alternate ways to generate revenues (and securitization markets opening a new universefro fees), insurers also found alternate ways, such as variable annuities, etc.

Well with "life insurance" companies (pure life insurance, annuities, some health, Long-term care, etc) the contracts are of a long term and are priced/sold once, so if you make a mistake it's with you for a long time.
Compare that to Propertty & Casualty companies which offer insurance typically on a one-year term basis, and re-price it each year... provides more control.

Life insurance is a much lower ROE business than P&C.

Why does Warren Buffett buy P&C insurance entities primarily (vs Life insurance)? Hmmm, could it have anything to do with the above items

Wall Street Breakfast: Must-Know News

why do you say ACE beat estimates?

hello, the investment side cannot just be ignored? for example, our sales ok, but we are bleeding on our investments, you know that past money we earned, well, we just lost a huge bunch of it

... sounds like a great business model (to lose what you earned previously)

Earnings Preview: Ace Limited

$60 target ??

Consensus estimates per First Call: $1.80 EPS, revenue $3.50B

Actual results:
* $0.06 EPS (that's a huge miss from $1.80 )
* Book Value DEcreased $910 million
* Net realized and unrealized losses after tax from our investment portfolio totaled approximately $1.12 BBillion for the quarter. This includes $608 million of unrealized losses and $404 million of realized losses.


ALLstate just had $1 Billion of losses, and now, After-Tax, ACE has $1.12 Billion (that means even more, Before-tax).

ALLstate got pummelled. What will happen to ACE ?