Second loan crisis may not be serious global insurance industry

Standard & Poor's analysts said in the report, Standard & Poor's, despite many insurance companies are given a negative credit rating, but this was mainly due to the pricing cycle is due to the low, not because of the company's assets in securities of factors. However, Standard & Poor's said the housing loan insurance and property insurance companies, and American International Group, as well as deep in credit default swaps (for a credit providers to avoid the risk of credit contract, is a common credit derivatives Commodities), the insurance company will likely shrink as a result of the U.S. housing market and suffered. Standard & Poor's analyst Chung wrote in the report, Wall Street, the United States under the jurisdiction of the federal government's mortgage agency and a number of banks over the (sub-loan crisis) in the atmosphere of panic, but the insurance industry but powerhouse cast over the same. They believe that this ignores the insurance industry's business model and the insurance industry paid a special effort ... ... the insurance industry in strengthening the capacity of self-protection. Standard & Poor's said that Europe and the Pacific Insurance's capital adequacy ratio of high loan-to-assets held less time and at the same time, Asia Insurance loan-to-face meeting of the crisis "should be easy." Standard & Poor's said that North American insurance industry's financial condition, this can deal with mortgage-related securities losses. Property, casualty insurance business as a whole, the North American insurance industry is not affected by the sub-loan-to-large-related loss is expected to total capital will account for 1.3 percent; but the life insurance industry suffered the impact of large losses expected to exceed the total capital 5%. Despite the outside of the insurance industry had a negative point of view, but the Standard & Poor's analyst said that as long as the insurance industry and capital strength to maintain a good level of mobile phase, the credit rating of the insurance industry will continue to be stability. "However, we found that the U.S. housing market crisis and credit crisis will spread to other assets, such as commercial real estate." Overall, the life insurance industry in the United States has 9.6 percent of assets invested in commercial loans to 1.7 percent in real estate investment, which is equivalent to the U.S. life insurance industry more than 90% of capital surplus.