Your Source for Up-To-Date News and Research on the Collision Repair Industry
click here to subscribe to the FREE INSIGHT Editor's Desk News Alert Email
SUBSCRIBERS-ONLY
Today's News
INSIGHT This Month
INSIGHT Archives
Survey Center
Letter to the Editor
Business Tools
Subscription Information
CSI Reporting
Financial Analysis
IRS Audit Guide
Management/
Technical Info
Market Watch Rates
INSIGHT Inside this month's issue...
Feedback
Letter to the Editor
Thursday July 5
A.M. Best Reports Property/Casualty Premiums Show Strong Growth, Earnings Remain Depressed
OLDWICK, N.J. -- During the first quarter of 2001, property/casualty net premiums written showed the strongest growth since the tail end of the last hard market in the second quarter of 1987. This growth was fueled by robust price increases in both the reinsurance and primary commercial-lines markets, according to an A.M. Best Co. special-report excerpt published July 2 in BestWeek.
Even personal-lines premiums began to show improved volume growth, as rate increases were implemented in the nonstandard market.
A.M. Best data shows that net premiums written rose 11 percent over the comparable quarter of 2000, while the combined ratio improved a modest 1.1 points from 107.2 in 2000 to 106.1 in 2001.
Nevertheless, earnings for the sector remained depressed, although the reinsurance sector began to report the good news associated with improved rates and reduced catastrophe losses. The good news is that insurers are likely to sustain rate increases into the first half of 2002.
Market casualties have been the catalyst for a flight to quality in the primary market, which will accelerate consolidation and widen the gap between strong and marginal players. Those that completed restructuring or reunderwriting initiatives during the latter part of the 1990s, or have maintained disciplined underwriting and reserving fundamentals, are best positioned to benefit from this phenomenon, while internally focused insurers will face greater challenges in attracting and maintaining good business.
©2000 Collision Repair Industry INSIGHT
All Rights Reserved
FEATURED
LINKS:
INSIGHT Supports the NABC!
Do You?
