More bad news from the world of insurance:

Wall Street Journal reports today: Hartford Financial Services Group said it will receive a $2.5 billion capital investment from German insurer Allianz SE, while it also warned of a big third-quarter loss and announced a 40% cut to its quarterly dividend.

This is one we will have to track closely as it portends potential problems with other insurers. Once again, it sounds like the problems revolved around the investments and not the reserves being insufficient for the liabilities. That is a two edged sword. It means the system is working like it is supposed to. It also means that there is a greater investment risk than previously calculated for every insurance company out there. Who might be next?

This entry was posted on Monday, October 6th, 2008 at 5:13 pm and is filed under 21st Century Business, Business, Finance, Risk Management. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.