Insurer failures decline 48% in 2004: Weiss Ratings

U.S. insurer failures declined 48% in 2004, with 13 companies failing last year, compared to 25 in 2003, according to Weiss Ratings Inc.
The majority of these were property & casualty insurers, with 10 failures last year, compared to 21 in 2003. Just 4 life & health insurers went belly up last year, compared to four the year prior.
Among the U.S. p&c insurers who failed in 2004 are: MIIX; Interboro Mutual; Statewide; Cascade National; American Superior; Cumberland Casualty & Surety; New America; State Capital; Pinnacle Casualty; and Carrol County Mutual.
“Insurers have been reporting robust profits for several quarters now, which reflects both an improved securities market and economic growth, resulting in fewer company failures compared to the numbers reported several years ago,” says Melissa Gannon, vice president of Weiss Ratings.
According to Weiss, an insurer is deemed failed if it is placed under regulatory supervision, in rehabilitation, in liquidation, or voluntarily resolved after regulatory action.