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Member, Beacon International Group, Ltd.
With decreases in excess layers continuing to drive down overall rates, companies' directors and officers liability insurance premiums for this year's second quarter decreased 4.4% vs. the same period a year ago, Aon Risk Solutions said in its latest D&O index report.
This is a slight modification from the 4.8% drop reported in the first quarter.
Programs that renewed in both the second quarter of 2014 and 2013's second quarter, reported a 5.4% decrease in pricing year-to-year, according to the report, which was released Wednesday.
As with its first quarter report, Aon pointed to excess pricing as the factor driving the decreases. Primary policies that renewed in both the second quarter of 2014 and 2013 with the same limit and retention in fact increased 3.8% on average, according to the report.
The report said, however, that 19% of clients received decreases in the primary layer, which compares with 13% in the first quarter and is the highest level since 2012's second quarter.
“On a macro basis, we believe that the surplus of capacity, combined with overall positive p&c underwriting results, will continue to make for an overall stable d&o pricing environment for public companies,” the report concludes.
Aon P.L.C. on Friday reported revenue of $2.88 billion for the third quarter of 2014, an increase of 3.2% over the same period a year earlier.