However, there is concern that the sustainability of solid operating results teeters upon how the industry handles increased competition, premium erosion and rising surplus levels.
Underwriting conditions remained positive during the first nine months of 2007, with property/casualty insurers recording underwriting income of $18.6 billion, compared with $23.8 billion during the same period a year ago, according to the report.
The industry’ s combined ratio remained a profitable 93.8, up slightly from the 91.7 achieved during the first nine months of 2006.
Yet A.M. Best expects underwriting results to experience a “modest decline” through 2007 and into 2008 as insurers give way to competitive pressures and begin to exercise less underwriting discipline, eroding industry operating performance with declining rates.
Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.