Mall,

"Many left after suffering huge losses, but the competition for capital has played an important role. Thus, when the last major Am carrier, Chubb, announced it was withdrawing from the market last yr, it acknowledged that the business was profitable, but left to deploy its capital in lines which were more profitable."

By the way, being profitable is not the standard by which an insurance operation should be measured. An insurance operation can be profitable while still being a terrible business. It must earn a high enough return on invested capital to justify its existence. All of this screams that the insurance prices were inadequate to cover the values of the horses and the risks associated with the coverage. So if prices are soaring now, it is probably warranted to a large degree.