You can never have too much capital

Hurricane Rita isn’t just threatening to lay waste to large parts of the Texan coast when it hits land this weekend. Its powerful winds may also batter the balance sheets of the world’s insurers. And if it does, that may be the trigger for a new wave of insurance company rights issues. The insurance sector took Hurricane Katrina in its stride. Although Katrina losses may have wiped out third-quarter earnings at a number of insurers, and possibly some full-year dividends, investors have focused ...