Strong Recovery in Total Reinsurance Capital Countered by Surplus Distributions: AM Best

AM Best on stress testing

The global reinsurance industry demonstrated a significant recovery of prior-year capital losses in 2023, driven by strong technical results, unrealized capital gains and higher reinvestment rates, according to a new AM Best commentary.

U.S. P&C Insurers Cut Expenses in the Wake of Deteriorating Personal Lines Results

Insurers cut costs for underwriting profitability in PL

Despite ongoing pressure from catastrophe-related and secondary peril losses, insurers within the U.S. property/casualty (P/C) industry have been able to bolster their bottom-line financial results by cutting underwriting expenses, according to a new AM Best report. The U.S. P/C industry segment has cut 2.6 percentage points from its underwriting expense ratio over the past decade,… Continue reading U.S. P&C Insurers Cut Expenses in the Wake of Deteriorating Personal Lines Results

Loss Costs Drive Negative U.S. Personal Lines Outlook; DUAE Market Grows Despite Vesttoo Bankruptcy

AM Best on stress testing

High losses in both homeowners and auto lines prompted AM Best to maintain a negative outlook on the U.S. personal lines segment while the rating agency also maintained a positive outlook for the delegated underwriting authority enterprises segment, AM Best analysts said in a market outlook briefing.

Best’s Commentary: Too Soon to Say If AI Is Leading Cause of Insurance Job Losses

insurance labor market 2024

In its Best’s Commentary, titled, “Recent Layoffs by Insurers Alone Do Not Signal Rating Pressure,” AM Best notes that even as hiring levels decline and layoffs appear to be rising across the insurance industry, it is too soon to cite AI as the leading cause of the job losses, at least at this nascent stage.

AM Best Revises Outlook on U.S. Medical Professional Liability Segment to Stable

Medical Professional Liability

AM Best is revising its outlook on the U.S. medical professional liability (MPL) insurance segment to stable from negative, citing improved rate adequacy, the diminishing impact from pandemic-related exposures, persistently redundant loss reserves, higher reinvestment rates and improved overall returns.