A.M. Best Special Report: Life/Health Insurers Grow More Vulnerable to Financial Impairment Due to Losses

Seven life/health and annuity insurers became financially impaired in 2008 and three impairments have emerged thus far in 2009. At least two of the financially impaired companies (FICs)—life/annuity writers Standard Life Insurance Company of Indiana in 2008 and Shenandoah Life Insurance Company in 2009—were related directly to the subprime crisis. Three more impairments were added to the list in 2007, bringing that year’s count to nine. Most of the other FICs were accident and health insurers whose reserves and capital were stressed by inadequate pricing, higher-than-expected claims and expenses and were weakened to the point of impairment by the current economic environment...

BusinessWire: A.M. Best Special Report: Life/Health Insurers Grow More Vulnerable to Financial Impairment Due to Losses