FITCH PREDICTS BAD YEAR FOR P/C

Fitch published a review of the nine-month 2001 reported GAAP results for the larger property/casualty insurers to assess operating performance thus far this year and to get an early indication of results for full-year 2001 and beyond. Based on its analysis, Fitch believes that the property/casualty industry is headed towards its worst underwriting year ever as the losses from the events of Sept. 11 accentuated what was already shaping up to be another disappointing year for the industry. Heavier than normal catastrophes through six-months combined with significant reserve strengthening at several companies had already dashed hopes that 2001 performance would show even a modest improvement over a lackluster 2000. However, such horrific results will likely set the stage for a sharp hardening of the property/casualty market in 2002, building on already favorable marketwide pricing trends.