Insurance Companies Report Record Huge Profits
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Although insurance companies generally claim that, because of high jury verdicts and "frivolous" lawsuits, they are losing money, the facts are quite different.
Alstate Insurance Company reported a record five billion dollars in profit for 2006.
State Farm Insurance Company increased its profit 65% for the year.
In addition, St. Paul Travelers earnings increased six times in the fourth quarter of last year and American International Group (AIG) increased its profit eight times.
These record profits were reported to the regulatory authorities even though hundreds of policy holders have not been paid for their hurricane Katrina losses.
According to A.M. Best Company, an insurance company rating agency, insurance company profits are expected to be booming again in 2007.
Insurance companies continue to deny that they are taking advantage of their policy holders. Instead, they claim that their record profits were due to fewer storms and more efficient business practices.