Daily Insurance Industry News
Daily Insurance Industry News
Wednesday 16th of January 2019
August 26, 2008

Credit crunch hits world’s biggest insurers

by David Masters

Story link: Credit crunch hits world’s biggest insurers

New figures released by one of the world’s most respected stock market analysts reveal that the credit crunch continues, with insurers and other financial providers the hardest hit.

Statistics released by Standard & Poor (S&P) show that operating earnings for the 500 biggest publicly traded companies in the world fell 29% on year for the second quarter of 2008.

Earnings for the quarter were $116.2 billion (£63.3 billion), compared to $194.3 billion in the second quarter of 2007.

This is the fourth quarter in a row of negative earnings growth for the S&P 500.

Financial companies – including insurers and risk managers – are the worst performers, with the last three consecutive quarters seeing financials posting negative earnings.

Energy companies are the best performers, now accounting for 25.1% of the S&P 500 operating earnings, up from 16.4% in the second quarter last year.

This is a stark turnaround, as in the second quarter last year financials were the best performers in the S&P 500, accounting for 28.4% of earnings.

If the poor performance of financial companies were excluded for S&P 500 figures then the group would actually have seen a 3.2% growth.


News posted:

Related stories to Credit crunch hits world’s biggest insurers: