Bad faith is the unreasonable failure of an insurance company to honor the terms of an insurance policy and deal with a policyholder in good faith. Insurance companies who are found to have acted in bad faith can be liable for punitive damages in addition to contract damages. Some states have bad faith statutes called "Unfair Insurance Claims Practices Acts."
ACE Slips Behind Travelers in Market Cap Race
Forbes reports that Travelers (ticker: TRV) edged out ACE (ACE) with a market capitalization of $27.02 billion to $26.88 billion. Market capitalization is the value of a company as measured by the number of publicly traded shares multiplied by their price.
Travelers and ACE have vied over time with one another as the largest insurer by market cap. Forbes reported that together, they comprise 13.8 percent of the iShares Dow Jones U.S.Insurance Index Fund ETF.
ACE recently traded on the New York Stock Exchange at $80.07 per share. That’s near its yearly high of $82.07, and compares to a yearly low of $67.99. Travelers recently sold at $72.82 per share, compared to a high of $74.70 and a low of $55.86.
Both New York-based Travelers and Zurich-based ACE are multi-national property insurers. ACE runs much of its U.S. business through offices in Philadelphia.
Separately, the Pennsylvania Insurance Department has announced that it has assumed the role of group-wide supervisor of ACE Group. Insurers are regulated at the state, not federal, level, and a new state law in Pennsylvania enhances its oversight of some global insurance companies with a presence in the Keystone State.
ACE American Insurance Co., which is domiciled in Pennsylvania, is the lead company in the ACE American Pool. ACE insurers that are based in Pennsylvania include ACE Property and Casualty Insurance Co., ACE Fire Underwriters Insurance Co., Pacific Employers Insurance Co., Insurance Co. of North America, Bankers Standard Insurance Co., Bankers Standard Fire and Marine Co. and Indemnity Insurance Co. of North America.
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