Global property/casualty insurance industry outlook stable: Moody's
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The outlook for the global property/casualty insurance industry is “stable,” according Moody's Investors Service Inc.
In “2014 Outlook — Global P&C Insurance” released Thursday, Moody's said it expects property/casualty insurance premiums to grow at low- to mid-single-digit rates in North America and Europe. Moody's said the premiums should grow at a faster rate — high single digits or double digits in Asia and Latin America.
“In North America, P&C price increases are moderating, but the cumulative benefit of past increases is still rolling through earnings, notably in U.S. commercial liability lines” said Moody's. It said low interest rates hurt investment income but encourage underwriting discipline.
The pricing outlook in Europe is mixed depending on the country, said Moody's. It said European insurance markets are “benefitting from the gradual economic recovery plus reserve releases, mitigating the impact of lower investment returns.”
The analysis said Moody's expects Japanese pricing to increase by low single digits, while pricing in other Asian markets likely will decline, reflecting competition from local and international carriers. It predicted that China is likely to surpass Japan as the largest Asian market within two or three years. In Latin America, Moody's expects the property/casualty sector to continue strong growth.
