The Guy Carpenter Global Composite’s combined book value is down 18 percent from the beginning of the year, reflecting the continued pressure that carriers face as third quarter results are released. Meanwhile, the S&P 500 Banks Index has recovered slightly, with its year-to-date decline hitting 32 percent, compared to last week’s 37 percent.
The recovery of the S&P 500 Banks Index is due in part to the implementation of the Troubled Assets Relief (TARP).
This week’s book value update uses a new measure to represent the global insurance industry. The Guy Carpenter Global Composite consists of 141 carriers from around the world, making it among the largest and most thorough measures available.