Homeowners Segment Well Capitalized but Weather Events Pose Significant Uncertainty: AM Best

Fannie Mae and Freddie Mac rules

The homeowners insurance segment in the United States has generated operating profits in three of the last five years, with a net profit of nearly $2.5 billion expected in 2021. However, according to a new AM Best report, the segment could face challenges, with Hurricane Ian affecting 2022 results. “U.S. Homeowners Line Well Capitalized but… Continue reading Homeowners Segment Well Capitalized but Weather Events Pose Significant Uncertainty: AM Best

D&O Market Had Its Best Year Since 2014, But Faces Headwinds: AM Best

D&O insurance rates

According to a recent AM Best report, last year was the most profitable for the directors and officers (D&O) liability insurance market since 2014, but it may not reflect the challenges that lie ahead for the product line. Double-digit price increases through 2021 fueled D&O insurers’ top-line premium growth, which is expected to remain near… Continue reading D&O Market Had Its Best Year Since 2014, But Faces Headwinds: AM Best

P&C Insurers Post Strong Gains in 2021 Despite Near-Record Catastrophe Losses

P&C underwriting performance improves except Person Lines

Net income for publicly traded U.S. property/casualty (P/C) insurers, according to an AM Best report, more than doubled to $133.9 billion in 2021, despite numerous weather-related natural disasters, investment market volatility, and the lingering economic effects of the COVID-19 pandemic. According to AM Best’s new Best’s Special Report, “Despite Near-Record Catastrophe Losses, U.S. Property/Casualty Insurers Post… Continue reading P&C Insurers Post Strong Gains in 2021 Despite Near-Record Catastrophe Losses

AM Best: Cat Loss Experience Remained Significant in 2021

AM Best on stress testing

Despite another year of record catastrophe bond issuance, the global insurance-linked securities (ILS) market remains burdened with prior catastrophe losses, a decline in assets under management for some prominent ILS funds, and a drop in overall performance of ILS funds, according to AM Best analysts. that 2021 saw significant catastrophe loss experiences, while secondary peril… Continue reading AM Best: Cat Loss Experience Remained Significant in 2021

Secondary Perils Taking an Increasingly Larger Share of U.S. Catastrophe Losses

According to an AM Best commentary, secondary peril events are becoming more impactful and generating an increasing amount of insured losses, affecting the bottom lines of personal and commercial lines property underwriters. A new Best’s Commentary, titled, “Secondary Perils Increasingly Responsible for Largest U.S. Catastrophes,” notes that although the trends of more frequent and harmful… Continue reading Secondary Perils Taking an Increasingly Larger Share of U.S. Catastrophe Losses

New Infrastructure Law Expected to Boost U.S. Surety Market: AM Best

Industrial pipelines on pipe-bridge against blue sky

The recently enacted $1.2 trillion U.S. infrastructure package is expected to result in more business opportunities for surety companies given the new and sizable investments that the transportation and energy sectors will see, according to a new AM Best report. The new law includes $550 billion in new spending on infrastructure over the next five… Continue reading New Infrastructure Law Expected to Boost U.S. Surety Market: AM Best