Insurance Company rating agency A.M. Best released a report on the state of the industry for life and annuity insurance companies.
The report is somewhat optimistic given the carnage the industry has experienced over the past year or so.
The industry as a whole managed to eke out a small amount of net income--$91.5 million--for 2008. However, capital losses for 2008 reached $19.6 billion.
Companies such as Allstate Corporation and The Hartford Financial Services have been hit hardest.
However, not all insurers have suffered during the downturn. For example, MetLife generated $3.21 billion in net income in 2008.
Certain lines of business such as variable annuities and asset management have been hit hard while many other lines of business remain solid.
Insurance companies have more access to capital in the current environment and they appear to be more focused on their core product lines.
Source: Investment News
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