OLDWICK, N.J.--(BUSINESS WIRE)--Of the nine life/health (L/H) and property/casualty (P/C) financially impaired companies (FICs) for 2013, eight were caused by the combination of deficient loss reserves/inadequate pricing, while the cause was not identified for the ninth company. Three FICs had been rated by A.M. Best Co. at one time, all within the three years leading up to impairment. Of those three, none was rated in the secure range in the year of impairment.
This briefing updates the most recent L/H and P/C impairment reviews published in mid-2013. In its 1969-2012 U.S. P/C Impairment Review, published June 24, 2013, A.M. Best noted four 2013 P/C impairments. Since then, four more 2013 P/C impairments have emerged. The 1969-2012 U.S. Life/Health Impairment Review, published July 8, 2013, reported one 2013 L/H impairment, and no more have emerged.
Despite the extent of the industry’s catastrophe losses in the past few years, the eight property/casualty FICs in 2013 were about one-third of 2012’s 22—and far below the 25.8 historical average annual number of impairments since 1969. On the life/health side, impairment experience for 2013 equaled the all-time low of one FIC reached in 1962.
For the full, complimentary copy of this briefing, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=220834.
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