Insurance: are you sure?
Companies have done much to tame the ravages of instability over the past18 months by raising capital and restructuring, but are the fundamentals sound?
In an industry that has lost a lot of capital – estimates range from $180 billion to $350 billion – investors may be forgiven for feeling it is wiser to avoid insurance company debt.
The sector has been plagued with volatility over the past 18 months, caused by falling share prices, a low interest rate environment and increased risk to cyclical businesses in general. At the same time, and just as in most of the other sectors of credit, technical factors have caused spreads to tighten
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