Two major insurance carriers have shown continued losses. AIG and Travelers are both facing difficult situations economic issues..
On Friday Moody's Investors Services downgraded two American International Group Inc. (AIG) lending united to near "junk" status. Other rating companies also lowered their ratings of AIG to Baa3.
This follows news last week that Travelers Insurance Company Inc.'s (Travelers) 2nd quarter income fell 21% which resulted in lower income and higher claims costs. Travelers is the second largest insurer after AIG. The revenue decrease at Travelers was reported to be 2.1% of $6.16 Billion.
As unemployment remains static or increases, fewer people are working, and premium revenues will continue to decline.