-

Best's Review Looks Closely at Insurance Expense Efficiency

OLDWICK, N.J.--(BUSINESS WIRE)--In a new article, Best’s Review speaks with industry experts about the challenges of reducing the expense ratio. According to Bill Pieroni, president and chief executive officer for ACORD, “What we’ve found and seen over the last several years is that the sustainable value carriers are able to have a lower-than-average loss adjustment expense and a lower-than-average pure loss ratio.”

A new Best’s Special Report notes some improvement, as the industry’s average underwriting expense ratio decreased to 26.3% in 2021 from 28.0% in 2011, and the net general expense ratio declined to 6.5% in 2021 from 7.1% in 2011. Read the full story, “Insurers Find Ways to Decrease the Underwriting Expense Ratio.”

Best’s Review is AM Best’s monthly insurance magazine, covering emerging issues and trends and evaluating their impact on the marketplace. The complete content of Best’s Review is available here.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2023 by A.M. Best Company, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Contacts

Patricia Vowinkel
Executive Editor, Best’s Review®
+1 908 439 2200, ext. 5540
patricia.vowinkel@ambest.com

Industry:

AM Best

Release Versions
English

Contacts

Patricia Vowinkel
Executive Editor, Best’s Review®
+1 908 439 2200, ext. 5540
patricia.vowinkel@ambest.com

More News From AM Best

Best’s Special Report: Florida Reforms Prove Positive as Underwriting Gains Increase Sharply; Softening Reinsurance Pricing May Sustain Market Momentum

OLDWICK, N.J.--(BUSINESS WIRE)--Florida-domiciled personal property specialist companies recorded nearly $1 billion in underwriting gains, following a $132 million underwriting loss just two years ago, highlighting market stabilization and increasingly manageable market conditions, according to a new AM Best report. For its Best’s Market Segment Report, “Florida Reforms Are a Positive Development; Underwriting Discipline Remains Essential,” AM Best identified 51 Florida-domiciled insurance carr...

AM Best Upgrades Issuer Credit Rating of Southern Farm Bureau Life Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has upgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to “aa” (Superior) from “aa-” (Superior) and affirmed the Financial Strength Rating (FSR) of A+ (Superior) of Southern Farm Bureau Life Insurance Company (Southern Farm Bureau Life) (Jackson, MS). The outlook of the Long-Term ICR has been revised to stable from positive while the outlook of the FSR is stable. The Credit Ratings (ratings) reflect Southern Farm Bureau Life’s balance sheet stren...

AM Best Assigns Issue Credit Rating to Chubb INA Holdings LLC’s Senior Unsecured Notes

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has assigned a Long-Term Issue Credit Rating of “a+” (Excellent) to Chubb INA Holdings LLC’s (Chubb) (Delaware) recently announced USD 1.0 billion issuance of 5.3% senior unsecured notes due 2036 in the U.S. market, which are guaranteed by Chubb Limited. The outlook assigned to this Credit Rating is stable. Chubb intends to use the net proceeds from this offering for general corporate purposes, which may include the redemption, repurchase or repayment of...
Back to Newsroom