The Cfo Goes 3 D
Hurricane Andrew, which ravaged South Florida in 1992, drove several local insurers into bankruptcy and threw a scare into the big national firms. Payouts of $15.5 billion evaporated a huge portion of the insurers' liquid assets. Had the payouts been much bigger, the insurers would have been forced to liquidate--at a big cost--investments such as municipal bonds, which are supposed to be held for the long term.
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