Despite mounting losses from another devastating hurricane season, property and casualty insurance company failures declined 44 percent, dropping from 16 to nine, while solid economic growth resulted in no bank closures in 2005, according to Weiss Ratings, Inc., a provider of ratings and analyses of financial services companies, mutual funds, and stocks.
Three life and health insurers failed compared to four in 2004, while the number of HMO insolvencies remained level at three.
“Overall economic strength has contributed to solid industry performances by banks, insurers, and HMOs, creating a more favorable environment in which companies can operate,” said Melissa Gannon, vice president of Weiss Ratings, Inc. “However, an individual company’s financial situation doesn’t necessarily mirror the performance of the industry, so consumers must continue to monitor the financial safety of any company with which they choose to work.”
The 15 failed insurers and HMOs in 2005 were:
Realm National Ins. Co. New York
Senior Citizens Mutual Ins. Co., Fla.
Reliant American Ins. Co., Texas
South Carolina Ins. Co., S.C.
Omnicare Health Plan, Tenn.
Employers Life Insurance Corp., S.C.
Financial Insurance Co. , Texas
Amil International Inc., Texas
Top Flight, Calif.
States General Life Ins. Co., Texas
Hospitality Mutual Captive Ins. Co., Ga.
Consolidated American Ins. Co., S.C.
PrimeGuard Ins. Co. RRG, Hawaii
MagnaHealth of NY Inc. , N.Y.
Benton Life Ins. Co., Inc., La.
The Weiss ratings are based on an analysis of a company’s capital, profitability, quality of investments, liquidity, and stability.
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