Best’s Special Report: 2023 U.S. Property/Casualty Impairments Update Includes 13 Companies
- January 31, 2025 01:30 PM (EST)
//BestWire// - Thirteen U.S. property/casualty companies became impaired in 2023, 10 of which were placed into insolvent liquidation, according to an AM Best report.
These 13 insurance company impairments identified in the U.S. property/casualty industry in 2023 follow six in 2022. In addition to identifying impairments that occurred in 2023, this Best’s Special Report also includes information on other impairments that occurred from 2000 to 2022 first identified by AM Best this year.
According to the report, five insurers were impacted by catastrophe losses, while another four impairments were private passenger auto writers. Four of the five companies impacted by catastrophe losses were affected by severe convective storms, primarily in the Midwest and South. Two other impairments were insurers that had been in run-off for many years. A commercial multi-peril writer, primarily in California, that was impacted by adverse loss reserve development, and a small Missouri-based fire writer that was unable to generate revenue sufficient to cover the company’s operating expenses represented the remaining two impairments.
The report, titled, “2023 US Property/Casualty Impairments Update,” states that from 2000 to 2023, 432 P/C insurers became impaired, consisting of 364 insolvent liquidations and 66 rehabilitations, 43 of which were closed during the period; 23 remained open as of this report. In addition, there were 59 conservatorships, 57 of which led directly to either rehabilitation or liquidation.
During the 2000-2023 period, workers’ compensation insurers accounted for 23% of the impairments. Personal lines insurers accounted for 31%, split between private passenger auto (19%) and homeowners (12%).
Commercial lines insurers accounted for 22% of impairments, with other liability/commercial multiperil accounting for 14% and commercial auto making up 8%. The remaining 23% was split among specialty lines.
To access a copy of this report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=350947.
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.