D&O Insured Losses Estimated to be $5.9 Billion as a Result of Credit Crisis

In February, 2008, Advisen forecast $3.6 billion of insured losses to D&O insurers as a result of the meltdown of the subprime mortgage market and the ensuing credit crisis. Since February, the credit crisis has mushroomed into a global financial calamity. In light of these developments, Advisen has revised its forecast to $5.9 billion.

The revised forecast reflects an increase in securities class action suits, securities fraud suits brought by regulators and law enforcement agencies, bankruptcies, shareholder derivative suits and defense costs associated with dismissed suits.

The free report on D&O losses is available at http://corner.advisen.com/The_Global_Credit_Crisis_and_D_O_final_2.pdf