If 2012 is anything like 2011 in the amount of storms and resulting losses, property/casualty insurers may shrink in number, according to a new Guy Carpenter study. Tornado activity this year so far is already high with 272 tornadoes, according to EQECAT. Last year, deadly twisters took the lives of at least 339 people, as more than 160 tornados ripped across seven states. “If there are continued losses due to storms, the required payouts could deplete the capital base of insurers forcing them to merge or be acquired in order to stay in business,” said Chris Ezbiansky, head of mergers and acquisitions at Guy Carpenter (GC) Capitals Advisory Americas.
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