LOS ANGELES (AP) — Insurance company shares were mixed Tuesday amid speculation that the industry might see premiums increase given the slate of recent natural disasters and uncertainty over the upcoming hurricane season.
Major earthquakes this year in New Zealand and Japan are expected to translate into billions of losses for insurers, which could make some insurers pull back on offering coverage or re-evaluate how they price risk. That could lead to higher insurance costs.
In a research note Tuesday, Goldman Sachs & Co. analyst Michael Nannizzi said he doesn't yet see a "hard market," industry lingo for when there is more demand for insurance coverage than supply, driving premiums higher.
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