Thursday, February 19, 2009
Life assurers are in trouble
As the economic picture worsens, more and more weak links are revealed. Banks are going bust, new scams are being uncovered every other day – even whole countries are tottering on the brink of insolvency. And it seems the life insurance sector is next in line to feel the pain. Potential carnage in corporate bonds is forcing these companies to make big loss provisions. Not only is that very bad news for these firms’ shareholders, but the overall fallout could be quite shattering.