NewsDJ MARKET TALK: Zurich Shrs Seen Under Short-Term Pressure
08/21/06 - Dow Jones Newswires
0825 GMT [Dow Jones]--Zurich Financial (ZURN.VX) may face some short-term pressure from Friday's announcement that State Farm Mutual Automobile Insurance abandoned its fight against California's auto insurance reform. Lehman Brothers estimates the reform, coupled with other rate reductions, could bring auto insurance costs down $370M in California. Farmers, which has a big presence in California auto market and is managed by Zurich, doesn't plan to reduce its rate, so this "may cause some pressure on growth," Lehman Brothers says. "We do not see this as a long-term issue, but rather a short-term obstacle. Shares -1.2% at CHF279.25. (AAG)
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(END) Dow Jones Newswires
August 21, 2006 04:25 ET (08:25 GMT)
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