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To: robert b furman who wrote (17662)	11/21/2002 9:23:46 AM
From: MeDroogies	Read Replies (2) \| Respond to of 19079

As I said, I don't know the industry. I was told that their leverage was worsening. Premiums are rising because of this...that they need to improve cash positions. Don't know what to say...as I said, it isn't my industry, but a family member was a middle manager at a major reinsurance firm. He's retired, but warned me.

To: robert b furman who wrote (17662)	11/24/2002 6:19:12 PM
From: BelowTheCrowd	Respond to of 19079

Insurance company profitability is dependent on a couple of things. First is the premiums collected, of course. Second is the payouts they have to make to settle claims. Third is their ability to get a good return on their money. This third item has been stretched thin over the past 3 years. That's why insurance premiums started rising and policies started getting cut back even before 9/11. The major cause is the market. When insurance companies were able to make a very hefty return, they could use that to justify lower premiums. With returns on both stocks and bonds now greatly reduced, they have to charge more in order to deliver even lower coverages. mg