OLDWICK, N.J.--(BUSINESS WIRE)--In this A.M.BestTV episode, John Andre, managing director, A.M. Best, reviews a new report that shows a second year of underwriting losses in 2017 for the U.S. property/casualty (P/C) insurance segment. Issues include weaker results for personal and commercial automobiles, and sufficient capital for insurers to maintain competitive pressures. Click on http://www.ambest.com/v.asp?v=rppc218 to view the entire program.
The U.S. P/C industry is expected to post an underwriting loss in 2017; nevertheless, according to the report, the segment remains well-positioned.
“2017 was certainly a watershed year, with its catastrophes: floods, hurricanes, wildfires and mudslides,” said Andre. “However, despite the big financial loss for the industry, it proved why insurance is so important since it help to put people’s lives back together after these events.”
Andre also highlighted the strength of the industry in 2017.
“The industry, on an aggregate basis, remains resilient and very well-capitalized. A.M. Best estimates that the overall statutory industry will grow surplus by approximately 2.5% in year-end 2017 to finish at $7.38 billion. This is about a 22% gain since year-end 2012, and it matches net written premiums over the same period,” said Andre. “For 2018, much will depend on the weather, but we anticipate a more-normal catastrophe year. Still, we expect a small operating loss.”
A.M. Best’s outlook for the commercial and personal segments is stable, but for the reinsurance segment, it is negative.
To access a copy of this market segment report, titled, “U.S. Property/Casualty: 2018 Review & Preview,” please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=270363.
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