BestWeek: Best's Report Finds Surplus Lines Results Remain Strong, as Competitors Grab at Market Share

OLDWICK, N.J.--(BUSINESS WIRE)--While surplus lines insurers outperformed the property/casualty industry in underwriting and operating performance in 2007, the softening market and more aggressive competition portend deterioration in profitability as premium levels decline, according to a new A.M. Best Co. special report featured in BestWeek U.S./Canada.

Absent a catastrophe that curtails the incursion of standard market insurers and the new offshore market, the surplus lines industry's market share is expected to continue decreasing over the near term.

Also, in BestWeek U.S./Canada:

Historically leaning toward Republican candidates, political contributions to Congress from insurance industry sources appear to be more balanced in the current election cycle.

Also, in BestWeek Europe:

In selling off its general wholesale and reinsurance operations, London-based broker Heath Lambert Group was responding to what it saw as fundamental change in the market.

And in both editions of BestWeek:

As of the close of the U.S. market on Thursday, August 21, the AMBG stood at 1001.04, a one-week decrease of 3.71%.

BestWeek is published by A.M. Best Co. for insurance professionals. To subscribe, please call A.M. Best’s customer service department at (908) 439-2200, ext. 5742, or e-mail your request to customer_service@ambest.com.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.