A.M. Best Maintains Negative Commercial-Lines Outlook Despite Rate Increases

Although commercial-lines pricing is expected to continue its upward trend, ratings agency A.M. Best is maintaining a negative outlook on the sector due to weak macroeconomics, less-favorable loss-reserve development and low investment yields.

By Phil Gusman | Updated on February 07, 2013

Although commercial-lines pricing is expected to continue its upward trend, ratings agency A.M. Best is maintaining a negative outlook on the sector due to weak macroeconomics, less-favorable loss-reserve development and low investment yields.

“As more and more commercial lines insurers are demonstrating their ability to achieve rate increase, premium growth in commercial lines appears sustainable,” says A.M. Best in its latest property and casualty Review & Preview. “The question is to what degree? While pricing trends are encouraging, A.M. Best believes commercial insurers still have a way to go before they can declare this a hard market.”

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