DCG Ecommerce Solutions

Global Finance unveils its second list of the Best Insurers around the world, a group of 20 industry leaders doing business in North America, Europe, Asia and Latin America.

It's been a torrid time for the global insurance industry, as plunging stock markets have combined with mounting claims volumes to exert a death-lock on companies' bottom lines. Few days have A passed without news of an insurer forced to deny rumors that it is in trouble.

Rating agency downgrades have turned up with monotonous regularity. And worries persist that the insurance industry is carrying as-yet-unrevealed toxic waste, passed on from the banking sector in the form of default swaps.

The reaction of individual firms to this altered landscape naturally has varied widely, but common themes emerge.All appear to be seeking to take advantage of an industry-wide hardening in premium rates-a phenomenon so extreme in some sectors such as directors' liability insurance that customers are eschewing cover.

Almost all are reshaping their underwriting practices, attempting to align risk much more closely to return. Many are seeking to shore up balance sheets ravaged by recent turmoil.

Against that tormented global background, selecting the World's Best Insurance Companies has proved an even more challenging task this year. Few companies have escaped unscathed. Global Finance has selected those companies that have best weathered the storm, have reacted in the most decisive manner and have shown a clear appreciation of the route back to robust profitability. And, it should be pointed out, the picture is by no means all gloomy.

By and large, the industry reacted extremely impressively to the challenges presented by the up to $50 billion of losses associated with September 11. Rates were already on the rise before the events of that terrible day. And few observers bemoan the erosion of a culture in which seemingly never-ending stock market gains obscured the unprofitability of the underlying business.

GLOBAL WINNERS

BEST ENVIRONMENTAL INSURER

AMERICAN INTERNATIONAL GROUP

President and CEO, AIG Environmental:

Joseph L. Boren

This powerhouse insurer has successfully combined its global reach, strong balance sheet and intimate knowledge of pollution risks to offer corporate clients some of the most comprehensive cover for liabilities emanating from environmental damage.

AIG has a true international network that lets corporate risk managers place virtually all their environmental risks through the same company. With more than $520 billion in assets, the giant insurer offers something for everybody, from contractor's pollution liability in Brazil to storage tank liability in the Philippines to coverage for asbestos liabilities and hazardous waste contamination in the United States. Chief financial officers intent on protecting their company balance sheets from the potential nightmares posed by environmental risks keep turning to AIG.

www.aigcorporate.com

BEST LIABILITY INSURER

AMERICAN INTERNATIONAL GROUP

Chairman and CEO: Maurice R. Greenberg

With seven decades of experience in foreign markets around the globe and a seemingly endless appetite for large risks, American International Group keeps satisfying the overall liability insurance needs of multinationals.

The New York City-based insurer headed by Maurice R. Greenberg has the product breadth and financial stability to meet corporations' general liability needs as well as provide the excess liability cover demanded by today's chief financial officer in an increasingly litigious business environment. One downside to dealing with this mammoth company-- which has more than $520 billion in assets-is that its claims department likes to hold onto its cash. Resolving a claim can try the forbearance of the most patient corporate risk manager. But with a network of highly skilled employees from Brazil to Germany to the Philippines who know the quirks of local insurance markets around the globe, AIG remains at the top of the world's liability insurers.

www.aicorporate.com

BEST PROPERTY INSURER

FM GLOBAL

President and CEO: Shivan Subramaniam

In a market with fewer and fewer players, FM Global stands out as one of the few insurers that can write property cover on a global basis. Multinationals with assets around the globe know they can turn to FM Global for the expertise they need to protect their buildings, property and equipment against such perils as fire, floods and earthquakes. Created in 1999 by the merger of the several companies within the Factory Mutual System, the Johnston, Rhode Island-based insurer soothes the nerves of corporate financial officers with a history that goes back more than 165 years. It is one of the world's largest commercial and industrial property insurers, with assets of $6.5 billion. And while the company's nit-picking loss prevention services can sometimes end up irritating its customers, FM Global keeps attracting corporate risk managers with its stability and expertise.