Climate Change Impacts Insurance Companies

From: Financial Times (London, U.K.), Dec. 30, 2008

MUNICH RE HIGHLIGHTS CLIMATE CHANGE IMPACT

By James Wilson in Frankfurt and Andrea Felsted in London

Financial damage and loss of life caused by natural disasters made
2008 one of the most devastating years on record and showed the impact
of climate change, one of the world's biggest reinsurers said
yesterday.

Munich Re said weather-related catastrophes helped push losses to
$200bn compared with $82bn in 2007.

Insured losses of $45bn were 50 per cent more than in the previous
year.

This made 2008 the third most expensive year to the industry for
catastrophe damage, continuing a long-term trend, the group said.

"Climate change has already started and is very probably contributing
to increasingly frequent weather extremes and ensuing natural
catastrophes," said Torsten Jeworrek, a member of Munich Re's
executive board.

Trading

Market has been in a tight trading range basically moving sideways since Novemeber. Talking heads all forecasting we will start recovery in the third quarter. Don't believe them. There are still some shoes to fall in this financial mess.