For all those insurers and brokers worrying about the equity markets and the impact they’re having on insurance company profits – and premiums – Ausbil Dexia, the local branch of the international Dexia financial services group, has provided some clarity.

Following are the percentage returns for the major asset classes for the three months to September 30:

International bonds +5.1%; indexed bonds +2.9%; Australian bonds +3.8%; Australian equities –6.6%; international equities –15.8%; direct property +2.7%; listed property trusts +1.1%; cash (bills) +1.3%.

Michael Wilson, Ausbil Dexia’s Chief Investment Officer, said it is “one of the worst… performances on record”. But he predicts a “positive turn” by equity markets in the next six months “once we get past the Iraq issue” and the US economy gets back on track.