Insurers' 3rd-qtr Likely To Be Profitable

IEVA M. AUGSTUMS

CHARLOTTE, N.C. (AP) — If the stock market and weather are any indication, third-quarter earnings reports from insurers will look a lot better than they did a year ago.

The big companies, which begin their reporting season Thursday with Travelers Cos.' results, are expected to be profitable. The reason: a recovering stock market and no massive hurricane losses.

"We should see significantly improved results," said Bob Hartwig, president of the Insurance Information Institute, a New York-based industry group. "The improvement in investment environment and reduction in catastrophe losses are a welcome turn of events."

2008 was a difficult year for property and casualty insurers. Hurricanes Ike, Gustav and Dolly slammed the Gulf Coast region. Ike alone created $12.5 billion in insured losses, making it the third most expensive hurricane in U.S. history, according to Insurance Information Institute data.

Hurricane-related losses drove Travelers' third-quarter 2008 profit down 82 percent and caused Allstate Corp. to record a $923 million loss.

Travelers had $682 million in catastrophe losses linked to the three hurricanes, nearly three times the $1.8 billion Allstate suffered from 35 weather events. The company doesn't break out losses for hurricanes.