Insurers Post $34.5 Billion in Investment Losses
02/20/09 - 05:01 AM EST
, AIG , AZ Gavin Magor
Investment losses at life and health, and property and casualty insurers jumped to $34.5 billion in the third quarter, more than double the amount in the first half of the year, according to a review of the latest financial statements.
More on AIG Today's Outrage: Obama Housing Plan Gets PannedOpinion: If You're So Rich, Why Aren't You Smart?AIG Could Sell Auto Insurance Unit: ReportsCDS Regulation: Stocks to AvoidCDS Regulation: Stocks to Avoid Market Activity American International Group Incorporated| AIG DOWNAllianz SE ADS| AZ DOWNThe $49.7 billion in losses for the first nine months of 2008 is a record for the industry. In the first half, losses totaled $15.3 billion.
Ten companies with the largest investment losses as of Sept. 30
The bottom 10 insurers include eight annuity providers, among them group companies from American International Group(AIG Quote - Cramer on AIG - Stock Picks), Allianz(AZ Quote - Cramer on AZ - Stock Picks), Massachusetts Mutual and TIAA.
AIG attributed $10 billion in losses to "market disruption" in the third quarter. Five of the 10 worst investment losses were posted by AIG insurance companies, with a total of $18.4 billion. Overall, AIG insurers lost $23.6 billion in investments on the way to a $19.6 billion net loss.
Some companies recorded investment gains. The top 10 insurers with the most profitable investments made $4.1 billion. Three of those were Fairfax Financial group insurance companies, which pulled in $908 million. Overall, Fairfax insurers made $976 million in investments and had net profit of $944 million.
Ten companies with the largest investment gains as of Sept. 30
Note: The insurers referred to in this article represent those filing the Life and Health or Property and Casualty annual statement blank with the National Association of Insurance Commissioners. Some companies may complete a different filing if they do not meet the NAIC requirements for mandatory Life and Health or Property and Casualty blank completion. Fourth-quarter data is not available as regulatory filings aren't required until next month.
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