The numbers are in and AIG, Allstate, Metlife, State Farm, and New York Life are not going to be happy-their industry continues to decline in profitability. This slide began in 2007 and shows no sign of letting up in 2010.
The numbers come from industry data collector and analyst SNL Financial, who showed that the industry lost over $900 million in quarter-two of 2010. Their net income, not profit, is down from this same time last year.
The bright side, the better capital and surplus numbers that are 17% higher than second-quarter 2009, are not enough to restore confidence in share-holders and brokers on Wall Street either.
However, the big shots at AIG, New York Life, etc, are still talking quite a game. They claim that the present market is an opportunity to grow stronger. They see that 2/3 of Americans are uninsured and think that they can capitalize on it. It’s tempting to dismiss this as bombast meant to boost the company’s stock prices. However, they are backing it up with action.
Tens of thousands of new agents are being hired this quarter. And hiring shows no signs of slowing down. (more…)