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Should they be increasing their reserves?
That is $60 less than in early 2000, when prices jumped briefly after state regulators required insurers to add to their expenses by increasing their reserves.
Now that the odds have shifted, the insurers are confirming the value -- or, in their case, the expense -- of the death benefit by increasing their reserves almost every quarter since the downturn began.
That A.I.G., respected for its careful management, could be caught by surprise by a surge in claims suggested that other insurers will be increasing their reserves, a move that will reduce their earnings.
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Institute investigators are now trying to determine whether the original wind tests were accurate, or whether different results would have led to stronger columns, thus increasing their reserve capacity, and possibly preventing or delaying a collapse.
Though nearly two of every three banks increased their reserves for potential future losses, large banks cut theirs.
The change will most likely force the banks to increase their reserves to cover loan losses.
Banks will gradually have to increase their reserves to protect against potential losses.
Sixteen more banks, which passed the stress tests narrowly, have until April 2012 to increase their reserves.
The European Banking Authority and national regulators are leaning on banks to increase their reserves and reduce risk.
"A year later, they had increased their reserves to only $1.9 billion, when nonperforming assets had soared to $5.5 billion," he said.
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CEO of Professional Science Editing for Scientists @ prosciediting.com