Monday, 11 February 2008

Advisen Subprime Report: Impact on D&O and E&O

Advisen's report entitled "The Crisis in the Subprime Mortgage Market and Global Credit Markets: The Impact on D&O and E&O Insurers" will be published later today. Since announcing it by press release and on Front Page News last week:
  • Dave Bradford, co-founder and Chief Knowledge Officer of Advisen and the report's author, spoke at the John Street Club. Thanks to Bill Brown, current President, for the invitation
  • Advisen attended the PLUS conference in New York
  • Many voiced their incredulity at the data about FI D&O pricing going down and coverage terms broadening despite subprime

So Advisen has had excellent chances to test-market the findings of our report with the best and the brightest in the industry and our assertions have stood up well. Lehman Brothers is now using our findings in its latest report to clients.

Press coverage of the report can be found here. The full report is available to subscribers of the full Advisen information platform for $200, and to non-subscribers for $500 by calling Advisen at 212.897.4800, or emailing in the US, or +44 (0)20 7929 6929 or in the UK. As a reminder of why you would buy the report, the findings include:

  • A full list of the writedowns reported by 132 global companies
  • Details of the $2.7 trillion in market cap losses experienced by those companies
  • A cross-referencing of the 191 subprime-related lawsuits against the companies with write-downs that show that 76% of the 132 global companies have not yet seen a lawsuit
  • Full explanation of how Advisen predicts $3.6b in D&O losses, just from securities class action suits (other D&O events and E&O losses expected on top)
  • Market share of the top ten writers of financial institution D&O and E&O
  • The contribution of subprime losses to 2007 and 2008 loss ratios, and
  • The impact of the subprime meltdown on D&O and E&O pricing and coverage terms to date

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