Auto Insurer downgrades?
Thursday, January 8th, 2009 at
5:08 am
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Do auto insurers have capital to pay policyholders? Not by issuig more stock ,which are severaly off their highs right now. Third-quarter earnings are coming out and the ratings agencies are watching the auto insurance sector closely. Many auto insurance advertising is based on the insurer’s size and financial stability, so any downgrades could have an impact on gross revenue, as current policy hlders jump ship and look for lower premiums and more stability.
Of course with Ford, GM and Chrysler were downgraded after obvious credit problems, so look to the rating agencies to be the last one on the block to know there are some credit issues.