After enduring stress with respect to pricing pressure and reduced insured exposure through mid-2009, the overall health of the U.S. insurance industry has improved to a great extent in 2010. Though the market turmoil forced many companies to take immense write-downs, the worst of the crisis appears to be now behind us.The soft market conditions, along with legislative changes, remain the chief causes for concern for the overall industry at this point. The industry continues to be challenged by the regulatory uncertainties and massive health care restructuring. Though there are signs of economic recovery, its sluggish pace is expected to continue at least through the remainder of 2010. Also, structural economies of scale have pushed the industry toward consolidation. While enormous financial support from the government helped rescue American International Group ( AIG) from collapse, many other firms remain under tremendous pressure or have fallen by the wayside. Competition within the segments of the industry has reduced, which is consolidating through mergers and acquisitions. This has increased market shares of the largest firms. We expect static growth with persistent soft market conditions, resulting in further consolidation in the industry. However, we expect the overall condition to improve in 2011, should the economy turn to growth post-recovery.