Jean Eaglesham

Insurer Allianz has won a legal battle to avoid paying out on damage caused by the controlled explosion of a bomb dropped in World War II. The origin of the dispute dates back to 1942, when the Nazis dropped a 2,200 lb. bomb on the outskirts of the English city of Exeter. A controlled explosion by the British army caused some damage to buildings owned by the University of Exeter. The college claimed on its property insurance but Allianz refused to pay.

Huge losses from national disasters prompt industry to jack up prices and pull back from some markets; ‘worst possible scenario' for consumers

Insurance giant Travelers reported higher revenue and income in the most-recent quarter, helped by double-digit percentage increases in premiums for auto and home insurance. Its improved performance suggests insurers are turning the corner on profitability after a long run of heavy underwriting losses. + The turnaround in personal insurance was driven by steeper prices for policyholders.

The pain for home- and auto-insurance customers is quickly becoming investors’ gain. Insurance giants’ shares and profits are hitting records, thanks in part to steep rate hikes. The jump came after the company reported a record profit for its fourth quarter, boosted by double-digit rate increases in its business and personal insurance units.

The shares of Travelers and Allstate have climbed to records after big rate increases.

FILE - This April 7, 2020, file photo shows an Allstate sign in Northbrook, Ill. Allstate says it has agreed to acquire National General Holdings Corp. for $4 billion in cash as it expands its insurance portfolio. National General shareholders will get $32 per share from Allstate, plus closing dividends of about $2.50 per share, for a total of about $34.50 per share. National General offers a range of property-liability products through independent agents including “non-standard” auto insurance, the Northbrook, Ill.-based Allstate said.(AP Photo/Nam Y. Huh, File)

Insurance rates are going up, coverage has been cut, and policies have been canceled. “It’s soul-crushingly tough."

The battle over who will pay for the damage and loss could take a decade, but most insurance claims will be paid much sooner. Recommended Stories

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