[THE NEXT SHOE TO DROP - INSURERS] The financial market plunge is weighing in on the life insurance company industry, and as the economy buckles, many insurers face losses that can eat away at capital required by regulators, says WSJ. Life insurer shares have taken a big hit - DJ Wilshire US Life Insurance Index has fallen 59% since 2009's start. Twelve life insurers have pending applications for TARP and the industry is expecting an answer to the requests in coming weeks. Rating agencies & investors are concerned about how long insurers can avoid dealing with the distressed assets on their books - Moody's, S&P & A.M. Best have already cut the ratings of 12 insurers in recent weeks. The ramifications of a weakened insurance industry for the economy are huge - they hold 18% of all outstanding corporate bonds. If the Life insurance companies stop buying corporate bonds, the capital markets might not fully recover.
those who can, do. those who cant, talk about those who can