Good Future For High Risk Auto Mkt
Monday, April 14th, 2003 AutoMerrill Lynch announced it has commenced analyst coverage of Birmingham, Ala.-based auto insurer Infinity Property and Casualty and given the firm‘s securities a "buy" rating. Infinity went public on the NASDAQ Stock Market in February. Merrill Lynch, based in New York, listed several positive factors for its strong rating. One favorable factor mentioned is the continuing hard market for auto insurance, especially for nonstandard auto rates. "Standard and preferred private passenger auto rates are rising at about six to nine percent, although the increases vary by state," Merrill Lynch said in its coverage initiation report. The firm also noted that nonstandard auto rates, which are Infinity‘s focus, have been rising even faster, with rate increases averaging more than 10 percent.
