Insurer shares fall on capital worries

NEW YORK (Reuters)—Insurers' shares sank on Thursday as concern mounted about further capital needs in the middle of the worst credit crisis since the Great Depression. Shares of Prudential Financial Inc., the second-largest U.S. life insurer, lost one-fourth of their value, while XL Capital Ltd., a large Bermuda-based insurer, fell 58% to $3.63. Prudential shares were down 13% at $37.62. Among other big losers were Principal Financial Group Inc., whose shares fell 11.4% to $19.26, and Lincoln National Corp. and Protective Life Corp., whose shares fell 25% to $20.96 and 18.5% to $14.99, respectively. "There’s going to have to be some additional capital raises," said Michael Nix, portfolio manager of Greenwood Capital Associates. Mr. Nix said it would become increasingly difficult to raise capital in the current credit... [read full story]