According to a recent Moody's Personal Lines Outlook, Homeowners’ insurers were profitable through the first half of 2015 after two straight profitable years in 2013 and 2014. Homeowner's insurers have benefitted from continued rate increases, although Moody's notes these increases are slowing — from 7% in 2013 to 5.4% in 2014, to about 4% expected in 2015, partly because of lower catastrophe reinsurance costs.
The Moody's report notes that insurers have been adopting “more sophisticated by-peril rating plans to better align premiums to specific perils,” such as wind, fire, hail, lightning and theft. “Assuming it is well-executed,” the report continues, “the multivariate approach should improve pricing efficiency and reduce earnings volatility.”
Below, a summary of Homeowners' insurance findings from SNL Financial, Moody's and Munich Re. Click image to expand.
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