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FOR IMMEDIATE RELEASE
OLDWICK - OCTOBER 18, 2024 09:23 AM (EDT)
Despite persisting issues impacting U.S. property/casualty insurance companies, such as increased catastrophe and secondary peril events, inflation and rising reinsurance costs, some moderation in the first half of 2024 led to fewer Credit Rating (rating) downgrades compared with the same prior-year period, according to a new AM Best special report.
The Best’s Special Report, titled, “P/C Rating Upgrades and Downgrades Both Declined in the First Half of 2024,” notes that Issuer Credit Rating upgrades also dropped compared with the first half of 2023, to 16 from 22, attributable predominantly to rating unit changes as companies were integrated into higher-rated rating units. Rating downgrades in first-half 2024 fell to 20 compared with 32 in the same previous-year period. The downgrades were down largely due to fewer severe weather events impacting property results and improved private passenger auto results during the first half of 2024.
“Despite fewer rating downgrades, personal lines insurers are still challenged by maintaining rate adequacy and somewhat by restrictive regulatory environments contributing to ongoing deteriorating results,” said Helen Andersen, industry analyst, AM Best. “However, commercial lines’ underwriting performance and reserve development have been consistently strong, with positive pricing momentum and underwriting discipline positioning the segment to navigate headwinds.”
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=347804.
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.