Mortgage insurers continue to struggle to recoup losses
Mortgage Insurers continue to struggle to recoup their losses after the housing bubble burst and foreclosures soared, leaving them with large claims on unpaid home loans.
Captive insurers, along with most of the property and casualty industry, face more financial challenges from the ongoing economic crisis, says Matthew Hamer, a Towers Perrin senior consultant in Weatogue, Conn. The company foresees the property and casualty industry could lose about 15%, or $80 billion, of its surplus by the end of 2008 because of unrealized losses partly because of falling equity prices and credit-related losses.