Re: profit margins for the insurance industry....

From: GBurch1@aol.com
Date: Fri Mar 10 2000 - 16:17:20 MST


In a message dated 3/6/00 3:39:43 AM Central Standard Time,
starman125@hotmail.com writes:

> Greg, what are profit margins like for the auto insurance companies?? I
> would think they are making VERY healthy profits overall!

Actually, not that great (in a pure sense), since auto insurance is one of
the most heavily regulated industries in the US. Auto insurance is a classic
case of little or no "underwriting profit", where insurers make their money
by holding and investing premiums before they have to pay it out in claims.
It's not unusual in such lines of insurance to see insurers make an over-all
profit through investment, even though they post yearly net underwriting
losses.

       Greg Burch <GBurch1@aol.com>----<gburch@lockeliddell.com>
      Attorney ::: Vice President, Extropy Institute ::: Wilderness Guide
      http://users.aol.com/gburch1 -or- http://members.aol.com/gburch1
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        "We never stop investigating. We are never satisfied that we know
        enough to get by. Every question we answer leads on to another
       question. This has become the greatest survival trick of our species."
                                          -- Desmond Morris



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