SNL Financial Introduces Complete Group and Insurance Industry Data

SNL Financial's newly released 2007 group and industry data indicates a highly profitable year for each insurance industry sector (Property & Casualty, Life and Health), with assets and capital rising to record levels.

According to SNL's 2007 group data, the P&C insurance industry's financial strength remained solid and loss reserves developed favorably for the second straight year. While fourth quarter unrealized capital losses totaled $7 billion, the P&C industry maintained a strong capital position. Leverage levels point to possible industry overcapitalization despite returning significantly greater dividends to stockholders.

Low interest rates pressured sales of fixed annuities in the Life insurance industry. As SNL data shows, variable annuity sales offset these declines, with overall Life premiums and deposits increasing by 5.8%. Operating profits grew 5.4% from 2006, bolstered by continued strong margins in Accident and Health lines. Wider credit spreads and liquidity concerns in the fourth quarter resulted in unrealized losses of $4.8 billion; however, overall assets increased by 5.6% for the year.

Likewise, SNL's 2007 group data reveals that overall assets for the Health insurance industry increased by 5.9%, despite fourth quarter unrealized losses of $413 million. Net premiums were up 19% in the Medicare and Medicaid lines, an area of increasing growth despite commercial membership dominating the bulk of business. The managed care industry remains a cause for concern, as premium pressure and rising medical costs brought about a 15% decline in underwriting gains for the second straight year.

"Outstanding levels of profitability in recent years have left organizations in a strong position to weather short-term turbulence in credit market conditions," said Jon Wright, Associate Director of Statutory Insurance Research at SNL. "Recent significant unrealized losses are largely considered to be temporary in nature and may result in significant gains down the road with increased credit market liquidity and tighter credit spreads."

With the addition of adjusted group data, SNL further enhances its statutory insurance offering, introduced earlier this year. SNL provides top-tier data, including market share for 700 industry groups and 1,600 individual filers. SNL's statutory insurance data is available exclusively as part of SNL Unlimited for Financial Institutions. To find out more about SNL Unlimited, contact sales @ snl.com or call 866.296.3743.

A more detailed analysis of trends in the P&C, Life and Health industries can be found on SNL's website: www.snl.com/marketing/DS/group_data.asp.

About SNL Financial:

SNL collects, standardizes and disseminates all relevant corporate, financial, market and M&A data -- plus news and analysis -- for the Energy, Banking, Specialized Financial Services, Insurance, Real Estate and Media & Communications industries. For more information, visit www.SNL.com.

SNL Contact

Monica Jenkins

Marketing Manager

Tel. 434.951.6951

mjenkins @ snl.com

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SNL Financial Introduces Complete Group and Insurance Industry Data



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