QE3, page-26

Uptrends/downtrends are NOT what insurance is all about. The insurance industry has suffered a couple of years of major world disasters on top of the GFC. In fact they have increased their premiums and should now show good underwriting profits so long as natural disasters return to normal, and Sandy is just an expected event - so long as we don't get too many of them close together. In fact the mere risk of disasters is what makes people buy insurance and hence underlies our profits. If insurance losses were easily predicted many companies would self insure.

Back following September 11, QBE dropped like a stone (as did other insurers) but within a few years rose from arounf $7 to about $30 (admittedly helped by the pre GFC euphoria).