Life Insurance Quote Overview

Profits of the nation�s life and health insurers fell $1.7 billion, or 37.8 percent, to $2.8 billion in the first three months of 2003, according to Weiss Ratings. Industry profitability for the three-month period reached its lowest level in 10 years.

Companies reporting the biggest drop in earnings included:
Equitable Life, down $199.4 million;
Metropolitan Life, down $144.9 million;
American General, down $134.4 million
Teachers Insurance & Annuity, down $125.2 million
Prudential, down $109.6 million
Driving the decline in industry earnings, insurers reported a $14.1 billion, or 51 percent, increase in reserves, which rose to $41.8 billion in the first quarter of 2003, compared to $27.7 billion in the first quarter of 2002.

In addition, insurers suffered a $2.8 billion capital loss on the sale of investments during the first three months of 2003, compared to a $1.7 billion loss during the same period a year ago.

�Insurers continue to suffer the effects of the economic downturn,� said Melissa Gannon, vice president of Weiss Ratings, Inc. �In addition to capital losses, the decline in interest income has forced insurers to reallocate profits to reserves in order to meet annuity contract obligations.�

Weiss issues safety ratings on more than 15,000 financial institutions, including banks and thrifts, HMOs, life and health insurers, Blue Cross Blue Shield plans, property and casualty insurers, and securities brokers.

Weiss also rates the risk-adjusted performance of more than 12,000 mutual funds and 8,000 stocks. Weiss Ratings is the only major rating agency that receives no compensation from the companies it rates. Revenues are derived strictly from sales of its products to consumers, businesses, and libraries.

Referred from: (http://www.consumeraffairs.com)