Administration February 1, 2003

Financial Firms' Failures Fall

January 14, 2002 (PLANSPONSOR.com) - The economic downturn in 2001 claimed comparatively few financial firms, according to an insurance-rating company.
Reported by

According to Weiss Ratings Inc., the economic downturn claimed 40 insurance companies in last year – a modest 5% increase over the year before, when 38 insurance companies failed.

Of the 40 failures, 34 were property and casualty insurers – Reliance Group’s insolvency accounting for 12 companies in this group, Weiss reports.

In comparison, in 2001:

  • the number of HMO failures declined for the second year, dropping 58%, from 19 in 2000 to 8, and
  • bank failures decreased by 43% from 7 to 4 over the same period

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