ACE Ltd

As customers use Internet-based aggregators to purchase insurance policies, insurers use online sales to interact directly with customers and reduce costs.

The impact of interest rate movements is lower in the P&C segment, as their products can be repriced annually to keep in line with interest rate movements.

For P&C insurers such as AIG and ACE, various mandatory requirements may drive sales of vehicle, workers’ compensation, and homeowners insurance.

P&C products have commoditized characteristics, resulting in sharp competition in the market and business cycles. AIG and ACE are key players in this space.

Policyholder liabilities, or policyholder reserves, represent the future claims that may arise for the pool of policies the insurer writes.

Financial market movements not only impact income from invested assets, but also the value of assets carried at fair value on an insurer’s balance sheet.

Interest rates are a key performance driver for life insurance companies. They affect their margins, hedging costs, and product sales.

Banking stocks are expected to benefit from higher interest rates, but not immediately. Also, rising interest rates would be countered by higher existing liquidity.

The biggest rationale for the ACE–Chubb merger is the potential for cost-cutting. By combining with Chubb, ACE Limited is creating a leading player in property and casualty insurance.

Hurricanes Sandy, Ike, and Andrew remain near the top of the list of the costliest catastrophes in terms of insured losses.

Insured losses are the ones that impact the profitability of insurance companies.

The percentage points for catastrophe losses in the combined ratio have increased in recent years.

The underwriting cycle moves between hard and soft market conditions, which have different sets of characteristics that determine the profitability of the insurance industry.

MetLife plans to grow its retail and group business in Latin America, capitalizing on the growing middle class, affluent class, and corporate needs.