Sector Snap: Managed care's investments (AP)

Friday October 10, 11:55 am ET Analyst: Managed care investments in decent shape, massive writedown possibility unlikely INDIANAPOLIS (AP) -- Health insurers remain well-capitalized and likely to dodge massive write-downs, even though stock market jitters have sent share prices plunging recently, an analyst said Friday. But that optimism has yet to reach investors, who continued to push down managed care stocks amid major market volatility. Oppenheimer analyst Carl McDonald said in a research note he finds the industry "very well-capitalized," with most insurers able to write off as much as 18 percent of their cash and investments before having to raise capital. "There is a panic in managed care stocks these days, reflecting concern that the market turbulence will cause massive asset writedowns in the third quarter, forcing... [read full story]