P/C Combined Ratio Estimate for 2011 is 107.5%
The U.S. property/casualty (P/C) industry reported its largest underwriting loss since 2006 and saw its operating performance deteriorate sharply in 2011, as catastrophe-related losses throughout the year wreaked havoc.
Insurers were affected by an unprecedented number of natural catastrophe events in the United States and abroad in 2011, resulting in catastrophe-related losses more than doubling the total reported in 2010, according to ratings agency A.M. Best.
As a result, all three segments—personal lines, commercial lines and U.S. reinsurers—are expected to report relatively large underwriting losses, the industry’s policyholders’ surplus is anticipated to decline modestly and return measures are expected to be in the low single digits, A.M. Best said.
A.M. Best Co. estimates net premiums written increased 3.5 percent to $442.0 billion in 2011. The industry’s combined ratio is expected to deteriorate 6.5 points to 107.5 for 2011 from 101.0 in 2010. Looking ahead, while pricing discipline seems to be taking hold, A.M. Best said it believes a traditional “hard” market is likely at least a year or two away.
Read the entire article on insurance losses in 2011: P/C Combined Ratio Estimate 107.5% (Insurance Journal 2/6/2012)