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Insurers' Exposure to Mortgage Meltdown Minimal, Moody's Says

The investment portfolios of insurers will suffer minimal repercussions from the sub-prime mortgage meltdown, according to executives with Moody's Rating Service. In a conference call...
September 11, 2007

The investment portfolios of insurers will suffer minimal repercussions from the sub-prime mortgage meltdown, according to executives with Moody's Rating Service. In a conference call held September 6, the Moody's execs said that only one to two percent of insurer's investment portfolios are invested in subprime mortgage securities, amounting to little impact on their business and subsequently not affecting their ratings.

Officials with the ratings service added that costs could increase for some individual insurers writing directors and officers liability and errors and omissions lines, because of defense costs over civil litigation anticipated against mortgage lenders and others connected to the subprime market.

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