This year is starting a lot like last year in terms of unexpectedly severe weather, to the consternation of the insurance industry, which paid out more than $100 billion in 2011 on natural disasters. That could put more pressure on the shares of property/casualty insurers, which did relatively better than other insurers last year but have turned in a mixed performance so far in 2012, despite being a favorite of some analysts. To be fair, more than half of the 2011 losses came from earthquakes in Japan and New Zealand, and earthquakes are impossible to precisely predict.
Read Full Article