Bear market hitting life companies and banks

The lingering bearish stock market climate has hit global banks and insurance companies badly over the past year. Slumping markets have impacted on the solvency levels of life companies, many of which were already struggling with the aftermath of summer floods in Europe and the 11 September attacks. Some, like Swiss Life, Aegon and L&G, have sought to raise money by selling off holdings and rights issues. The US investment bank sector has also been adversely hit by the turmoil in global markets and the almost complete stop in IPO activity, as well as the growing likelihood of increased...