MARCH 17, 2023 08:52 AM (EDT)
Best’s Special Report: Fewer Credit Rating Upgrades, More Downgrades for U.S. Property/Casualty Insurance Segment in 2022
Helen Andersen Industry Analyst +1 908 439 2200, ext. 5722 helen.andersen@ambest.com | Christopher Sharkey Manager, Public Relations +1 908 439 2200, ext. 5159 christopher.sharkey@ambest.com Al Slavin Senior Public Relations Specialist +1 908 439 2200, ext. 5098 al.slavin@ambest.com |
FOR IMMEDIATE RELEASE
OLDWICK - MARCH 17, 2023 08:52 AM (EDT)
Credit Rating (rating) upgrades on U.S. property/casualty insurance companies tempered in 2022, with downgrades increasing modestly as carriers contended with higher reinsurance costs, economic and social inflation and rising loss costs during the year, according to a new AM Best special report.
The Best’s Special Report, titled, “Fewer Upgrades and More Downgrades for U.S. P/C Industry in 2022,” notes that some insurers were able to navigate the changing economic environment and strengthen their balance sheets and operations, while others reported deteriorating results. The number of upgrades declined to 36, or 5.1% of total rating actions, from 54 in 2021, and the number of downgrades increased to 4.2%, or 30, from 3.4% in the previous year. AM Best assigned 32 ratings in 2022, 4.5% of all rating actions. Of the assigned ratings, 27 were in the commercial lines segment, three were in the personal lines segment and two were in reinsurance. Affirmations made up the bulk of 2022 total rating actions at 82.8%.
“Market trends are likely to continue impacting U.S. personal lines insurers negatively,” said Helen Andersen, industry analyst, AM Best. “The commercial segment also faces headwinds but remains solidly capitalized owing to its conservative investment profile, sound reserve position and enhanced risk management discipline.”
Other highlights from the report include:
To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=329769 .
A video discussion of this report, along with ratings trends in the life/health segment, is available at http://www.ambest.com/v.asp?v=ambratingtrends323 .
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.