AM Best Revises U.S. Commercial Property Market Insurance Industry Outlook to Stable

AM Best on Commercial Auto market

According to a new AM Best report, AM Best has revised its market segment outlook for the US commercial property market in its report from negative to stable. The revision is based on the following factors: Segment carriers’ strong risk-adjusted capital Ongoing rate increases and underwriting discipline The decrease in business interruption claims, as well… Continue reading AM Best Revises U.S. Commercial Property Market Insurance Industry Outlook to Stable

P&C Industry Experiences $6.1B in Underwriting Losses for Nine Months 2021

AM Best on Commercial Auto market

According to a new AM Best report, increased losses and expenses in the property/casualty (P/C) industry in the United States during the first nine months of 2021 resulted in a $6.1 billion underwriting loss for the period. This financial review is detailed in a new Best’s Special Report, “First Look: Nine-Month 2021 Property/Casualty Financial Results,”… Continue reading P&C Industry Experiences $6.1B in Underwriting Losses for Nine Months 2021

Global Minimum Tax Proposal Could Create Tax Headaches for Certain Insurers: AM Best Commentary

AM Best on stress testing

Given the accounting differences for global insurance companies in different jurisdictions and compared with other industries, a new global minimum tax on certain multinational companies creates the potential for double taxation on such insurance companies, according to a new AM Best commentary. An Organization for Economic Cooperation and Development (OECD) proposal includes a new minimum… Continue reading Global Minimum Tax Proposal Could Create Tax Headaches for Certain Insurers: AM Best Commentary

U.S. P/C Insurance Industry’s Underwriting, Net Income Increases in First-Half 2021: AM Best

Best rankings on net premiums

The U.S. property/casualty (P/C) industry grew its net underwriting income by 28% in the first six months of 2021 compared with the same prior-year period, according to a new AM Best report. ‘This financial review is detailed in a new Best’s Special Report, titled, “First Look: Six-Month 2021 Property/Casualty Financial Results,” and the data is… Continue reading U.S. P/C Insurance Industry’s Underwriting, Net Income Increases in First-Half 2021: AM Best

Preliminary Q1 Results Show U.S. P/C Industry’s Underwriting Income Cut by More than Half

The U.S. property/casualty (P/C) industry saw its net underwriting income fall in first-quarter 2021 by 53% as compared with the same prior-year period, according to preliminary financial results. This financial review is detailed in a new Best’s Special Report, “First Look: Three-Month 2021 Property/Casualty Financial Results,” and the data is derived from companies’ three-month 2021… Continue reading Preliminary Q1 Results Show U.S. P/C Industry’s Underwriting Income Cut by More than Half

Premiums for Standalone Cyber Policies Grew Over 28% in 2020: AM Best

Cyberattacks pose risk to creditworthiness

According to a new report by rating agency AM Best, the ransomware attack on US energy firm Colonial Pipeline has impacted the cyber insurance segment, with premiums for standalone cyber policies growing beyond 28% in 2020. The report highlighted that the higher rate of growth for standalone policies gives an indication that organizations are having… Continue reading Premiums for Standalone Cyber Policies Grew Over 28% in 2020: AM Best

U.S. P/C Insurers Perform Well in 2020 Despite Pandemic, Higher Catastrophe Losses

P&C underwriting performance improves except Person Lines

Publicly traded U.S. property/casualty (P/C) insurers performed unexpectedly well in 2020 despite extraordinary negative factors, generating operating income of $82.1 billion, according to a new AM Best special report. The analysis in the Best’s Special Report, “US P/C Insurers Perform Well Despite COVID-19,” covers the vast majority of the U.S. P/C insurers that file U.S.… Continue reading U.S. P/C Insurers Perform Well in 2020 Despite Pandemic, Higher Catastrophe Losses

Stock Market Frenzy Will Add to Insurers’ Social Inflation Pressures: AM Best

Macro view of a screen of trading terminal with abstract financial graph and digits. Trading and forex concept. 3D Rendering

AM Best is of the view that insurers providing directors and officers (D&O) insurance coverage for Robinhood, the free trading app facing class-action lawsuits for restricting stock purchases, could face steep defense and containment costs. Stock market volatility is a major driver of shareholder litigation, especially D&O claims. Disclosures provided by Robinhood will be under… Continue reading Stock Market Frenzy Will Add to Insurers’ Social Inflation Pressures: AM Best

Preliminary Nine-Month 2020 Results Show 86% Underwriting Income Decrease for U.S. P/C Industry

P&C underwriting performance improves except Person Lines

The U.S. property/casualty (P/C) industry’s net underwriting income fell by 86% in the first nine months of 2020 compared with the same prior-year period, largely due to increases in underwriting expenses and dividends to policyholders. This financial review is detailed in a new Best’s Special Report, titled, “First Look: 9-Month 2020 Property/Casualty Financial Results.” The… Continue reading Preliminary Nine-Month 2020 Results Show 86% Underwriting Income Decrease for U.S. P/C Industry

AM Best Adds Weight Behind Pandemic Backstop Proposals

AM Best on stress testing

Rating agency AM Best has become the latest industry body to voice support for tackling future pandemic risk through public-private partnership. In a new report, analysts noted that insurers are likely to face significant reserve uncertainty arising from the current accident year due to the challenge of estimating COVID-19 losses. Social inflation, combined with lawsuits… Continue reading AM Best Adds Weight Behind Pandemic Backstop Proposals