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Many of the property and casualty insurance industry stocks fell in price during the 3rd qtr of 1998, but there are few reasons to purchase these stocks in late 1998, due to the uncertain US economy and poor insurance company earnings. Low interest rates and insurance reserves practices will have an effect on insurance company earnings, as well. These stocks are not well suited for investment in the last qtr of 1998.

Assumed low investment income, flat premium growth, and weather-related losses in the second six months of 1998 are expected to have an impact on projected profits for the property and casualty insurance industry. Earnings through the year 2000 are also forecast to slow, although capital gains for the industry have been good in 1998. There are few opportunities among these stocks and investors need to be cautious when making commitments.

The 1998 property and casualty insurance industry will be affected by decreasing earnings. Flat and lower premiums, single-digit investment income comparisons and smaller margins will continue through 1998, resulting in flat earnings by 1999. Investors should remain wary and focus on specialty insurers such as Ace Ltd., Fremont General, and Markel Corp.

Improved international volume and margins, lower weather-related losses, a better regulatory climate, and tame inflation in the 1990s have offset low and flat price cuts in the property/casualty insurance industry. However, reserves are rising more slowly than premiums although the industry should meet bottom-line expectations by the 4th qtr of 1998. These stocks are not expected to reach higher levels due to premium and earnings deceleration.

The property and casualty segment of the insurance industry show strong securities sales and activity during 2nd qtr 1997, as the industry's valuation excels on speculation of increased U.S. inflation. The industry in general remains a relatively strong economic prospect, but the industry is not expected to generate significant investment profits for the private sector throughout the first half of 1998.

Stocks for property and casualty insurance companies remain strong in spite of their pullback, and, outside of special areas, the inherent risks in the industry do not compensate for the potential returns. The bond market has been the main economic driver for the industry, although operations are more streamlined. However, the industry remains problematic for the long term and these stocks can be sensitive to setbacks in the US economy.

The debt/capital ratios and book values of companies in the property and casualty insurance industry have been raised by the drop in interest rates. However, lower interest rates hurt earnings for the industry with slower investment income growth and higher capital amounts, which puts pressure on rates and lowers profit margins. Although there are some strong companies in the industry, current multiples cannot be sustained through the year 2000.

Small capitalization stocks within the property/casualty insurance industry are favored in 1996. There are also opportunities in the reinsurance segment of the industry. Revenues and earnings are not rising because of catastrophe and weather-related losses. Favorable reserve development has also decreased. Many insurance companies are restructuring.

Rising long-bond yields and low growth are making property and casualty insurance stocks less attractive in 1996. Continued industry consolidation and less demand for reinsurance has resulted in an increased focus on expenses, and companies with high expenses have become less competitive. These stocks have underperformed the market in 1996, and possible lower earnings, along with interest rate risk, make them average investments for 1999-2001.

The property and casualty insurance industry had good earnings in 1995. In the 1st qtr of 1996, however, storm losses, charges for asbestos and the environment, and lower premium growth have hurt some companies. Lower costs in commercial casualty and personal lines are benefitting insurers, but 1996 will be uncertain for reinsurance. Profitability will improve in 1996 and there are several good opportunities for investment among these stocks.

Property and casualty stocks outperformed the market in 1995 although earnings were uneven. Wider workers' compensation margins, catastrophic event exposure in property and casualty lines, and cost disinflation in auto insurance are the major trends that will impact earnings. There will be more consolidation and restructuring in this industry and investors need to concentrate on stocks with good reserves and financial stability.

Financial reports for the 1st qtr of 1995 indicate that the earthquake, in Kobe, Japan, did little harm to property insurers, and the rest of 1995 should remain profitable. Commercial line underwriters are having better premium and ratio gains than those which carry personal lines. Insurance stocks will underperform the market in 1995, but good earnings give defensive protection to investors.

Allstate Corp reported third quarter 1996 net income was down about 35% from the same period of 1995, while revenues were up 5.5%. After-tax charges of $248 million, including $207 million to raise reserves for environmental risks and discontinued lines, brought recorded operating income down from $509 million to $261 million. Total net income for the quarter was $292 million., Allstate Corp. reported lower third-quarter earnings, primarily due to one-time after-tax charges, but absent the charges, growth continued in its core personal lines business. Net income of $292 million for [...]

Allstate Corp. reported its most profitable performance in 1996, according to CEO Jerry D. Choate. The insurance company's consolidated operating income increased by 35.6% for the the fourth quarter of 1996 and consolidated net income rose 49.9% during the same time period. Allstate's decision to focus on its core strengths contributed to the stellar results., Allstate Reports Gains In Consolidated, P-C Results Northbrook, Ill.-based Allstate reported a 35.6 percent increase in consolidated operating income and a 49.9 percent increase in consolidated net income for the [...]

Forecasts for Allstate's 1996 financial performance have proven true. Now independent since Sears spun off the last 80%, the company is using techniques such as new technology to lower underwriting and operating costs, and a revamping of catastrophe liability coverage for such as earthquakes.

Allstate Corp reported 1996 second quarter net income was up 47.2%, due in part to underwriting results and improved property/casualty realized capital gains. Allstate's consolidated net income totaled $764 million up from $519 million for the same time last year. This gives the publicly-traded company income of $1.71 per share. Realized capital gains after taxes rose to almost three times what they were in the first quarter 1996, to $273 million. Operating earnings were up 14%. Market share gains, sale of the Northbrook commercial lines, and ratio for catastrophes all impacted these figures., Allstate Corp. of Northbrook, Ill., posted a 47.2 percent gain in net income in the second quarter, citing improved property/casualty realized capital gains and underwriting results. The publicly-traded Allstate reported [...]