Monday, July 27, 2009

Insurers Face Intense Dividend Scrutiny

While the stock prices of many insurance companies have rebounded since March earnings are about to be released and a number of investors are beginning to wonder if dividends are safe within the group as the Financial Times points out in a recent article.

"In particular, investors have their eyes on dividends in light of falling sales and profits. Rising bond defaults and mortgage losses as the recession bites may also limit the ability of insurers to maintain payouts."

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