As the economy continues to sputter and clients are not buying new policies, property insurance providers have had a tough time generating revenue in the past month. To combat down revenues, the country's largest insurers such as ACE Limited and American International Group Inc. have upped their interests for the wealthiest segment of the country's population, according to equity research available on StockCall.com.
The general consensus amongst providers is that in a weak economy and high unemployment, the middle class as a whole just is not in a position to spend any money on new insurance policies. Instead, insurers are favoring wealthy clients interested in protecting their estates from taxes. Wealthy clients are also increasingly in favor of policies for other high value assets like precious metals which in some cases are now holding their value better than the U.S. dollar.
In addition to increased interest in the wealthy, some insurance providers are scaling back their international holdings to raise capital. One major insurance provider, American International Group Inc., recently sold off a portion of its Taiwan holdings to pay back some of the bailout money it received during the recession.
Overall, economic conditions have made it hard-hitting for property insurers to write new policies. Attracting wealthier clients and selling off holdings have provided a revenue boost for some companies within the industry lately though.
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