Property/casualty insurers could see better results in 2013: A.M. Best
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Despite losses caused by Superstorm Sandy, there are signs that the property/casualty insurance industry will enjoy improved results in 2013, according to an analysis released Monday by A.M. Best Co. Inc.
Among other things, net written premiums continue to increase, as does policyholders' surplus, said Oldwick, N.J.-based Best in “Catastrophes Drive Underwriting Loss in 2012; Better Results Expected in 2013.”
Best added that the pricing environment is expected to improve this year, although rate increases may be smaller.
“While the continuing sluggish macroeconomic environment, persistently low investment yields and the current loss reserve position of the industry will present challenges, A.M. Best believes the industry overall is sufficiently well-capitalized to overcome them,” said Best.
Best said, however, that while its outlook for both the reinsurance and personal lines segments remains stable, the commercial lines segment will retain its negative outlook in 2013.
“Insurers are still grappling with competitive market conditions, less favorable loss reserve development, sluggish economic growth and depressed investment yields; and these factors will most likely result in more negative rating actions than positive rating actions during this year,” said Best.
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