OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best’s annual survey of the Caribbean Association of Insurance Regulators (CAIR) member countries found that the region’s performance in 2016 was solid with insurers posting an after-tax income of USD 553 million, although that represented a 20% decline from the previous year.
The Best’s Special Report, titled, “CAIR 2018: Forecast is Cloudy, But With a Chance of Profits,” states that while total net losses, loss adjustment expenses and underwriting expenses were up for the region, the industry remained profitable.
Survey highlights include the following:
- Premiums written decreased 3% to USD 4.2 billion, with the largest decreases in Suriname (down 40%) and Trinidad and Tobago (down 12%), owing primarily to local currency depreciation in USD terms;
- The average combined ratio for the region deteriorated to 110%, but was largely offset by an increase in investment income;
- Reported losses and net loss adjustment expenses increased 2.85%, to over USD 1.8 billion;
- Total assets held increased by 7% to stand at over USD 14 billion; and
- Consolidated gross premiums increased 1.8%, while net premiums decreased by approximately 1%.
The CAIR member countries surveyed covers 330 active licensed companies writing business in the region, an increase of 16 active companies surveyed in the previous year’s data collection. As the countries in the region are widely diverse with varying reporting requirements, accounting standards and regulatory requirements, the results vary from country to country on some levels.
The economic damages from the 2017 hurricanes have been estimated in the tens of billions of dollars, and impacted many of the territories surveyed. Insurance penetration has historically been relatively low in some of the affected areas, leading to a wide disparity between economic and insured losses, which should be captured in next year’s survey results. Gross domestic product growth in 2018 and 2019 is expected to be positive, but it likely will diverge among the member countries, depending on rebuilding efforts in the aftermath of the hurricanes, as well as regional tourism arrivals and the strength of the commodity cycle.
To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=274759.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.