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Golden Gate could spend on intensive marketing and spark off price war due to the backing of its corporate parent, one of the largest retailers in the world. The high interest rates during this period also adversely affected Manzana's property insurance business. Hence, Manzana started venturing into other business areas and began insuring liability too. From almost no liability policies in the mid 60s, it went to almost a 50-50 split between liability and property insurance in the 1980s and now, 65% is property while 20% is liability insurance. But unfortunately due to the insurance crisis of the 1980s, settlement claims on liabilities rose and the company posted its first annual loss in 1985...
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