A.M. Best

• A.M. Best: U.S., Bermuda Reinsurers Challenged, but Stable Due to Capitalization, Underwriting

  By Phil Gusman, PropertyCasualty360.com  |  February 12, 2013

  The U.S. and Bermuda reinsurance sector has its challenges, particularly when it comes to living up to previous years’ returns on equity for investors, but ratings agency A.M. Best is maintaining its stable outlook due to reinsurers’ strong capitalization and enterprise risk management practices, as well as a stable pricing...

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

  By Phil Gusman, PropertyCasualty360.com]  |  February 7, 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.

• A.M. Best: Drought Could Drive Crop Insurers' Underwriting Results to 25-Year Low

  By Staff Writer  |  January 2, 2013

  While crop insurers will likely face their worst underwriting results since 1988 due to 2012’s severe drought, ratings agency A.M. Best does not expect the net impact to materially affect any insurer’s capital position.

• A.M. Best: 9 Mos Industry Results Show Much Depends on the Weather

  By Mark E. Ruquet, PropertyCasualty360.com  |  January 2, 2013

  After catastrophes in 2011 drove down net income for the first nine months of that year, a relatively benign first nine months in 2012 led to a rebound in insurers’ results, showing the large role weather plays for the insurance industry.

• Reinsurers in Good Shape, But Should Sharpen Underwriting Focus

  By Mark E. Ruquet, PropertyCasualty360.com  |  September 10, 2012

  Despite huge losses from catastrophes last year, reinsurers began 2012 in solid shape—but the companies benefited from factors that might not be present going forward, and the industry will require renewed focus on underwriting, ratings agencies say.

• Reinsurers in Good Shape, but Need Added Focus on Underwriting

  By Mark E. Ruquet, PropertyCasualty360.com  |  September 4, 2012

  Despite high catastrophes last year, reinsurers began 2012 in solid shape, but the companies benefited from factors that might not be present going forward, and the industry will need renewed focus on underwriting, ratings agencies say.

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  Insurance Captives Finding Home Onshore

  By Anya Khalamayzer, PropertyCasualty360.com  |  August 17, 2012

  The years of dominance enjoyed by off-shore captive domiciles may be coming to an end as more captive formations move onshore into the United States and Europe, says a report from the Insurance Information Institute.

• Are You Prepared for the Year-Round Catastrophe Season?

  By John W. DeWitt  |  August 14, 2012

  Regardless of geography or time of year, your business needs to be prepared for increasing frequency of and growing damage of severe weather.

• Meet the New Boss: Benefits of the Tokio Marine Acquisition

  By James Murdock  |  August 6, 2012

  When Tokio Marine Holdings Inc. announced it would acquire Philadelphia Consolidated Holding Corp. for $4.8 billion in July 2008—near the height of the global economic meltdown—market-watchers were impressed but not overly surprised at the hefty price tag. Some four years on, many agree, the deal still looks smart.

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  Economy Hurts Captive Results; Written Premiums Up as Companies Retain More Risk

  By Phil Gusman, PropertyCasualty360.com  |  August 3, 2012

  Captives are “starting to feel the squeeze” of market conditions, low-investment yields, and issues in the global-financial markets, according to A.M. Best, which reports that a composite of 209 captives it follows reported a decline in net income for 2011.

• Six Steps To Prevent Bad Faith Claims

  By Kevin Quinley, CPCU  |  July 27, 2012

  Some view institutional claims as the Ebola virus of bad faith litigation because of expensive discovery and the potential for punitive damages. Here, we explore how solid claims practices often serve as an insured's best defense.

• Reports Question Industry’s Reserve Strength, Recent Accident-Year Releases

  By Mark E. Ruquet  |  June 18, 2012

  Analysts agree that a drop in P&C reserve releases is inevitable as years of soft-market pricing catch up with loss realities—and one report questions 2011 releases from recent accident years for longer-tail commercial lines.

• Weisbart: Hard Market Close, But Underwriting Losses a Challenge

  By Caterina Pontoriero, PropertyCasualty360.com  |  June 18, 2012

  The insurance industry is expected to see its strongest growth since 2004, according to one industry economist—but he adds that the good news is moderated by consistent large underwriting losses.

• Strong Start to 2012 for Reinsurers May Restrain Rate Increases

  By Phil Gusman, PropertyCasualty360.com  |  June 13, 2012

  While the reinsurance sector contended with one of its biggest loss years ever in 2011, capital levels remain strong, 2012 has started off on a better note than last year, and quoting volatility for Florida renewals appears to be moderating compared to 2011’s quoting behavior, recent reports say.

• Reports Question Industry’s Reserve Strength; Recent Accident-Year Releases

  By Mark E. Ruquet, PropertyCasualty360.com  |  June 11, 2012

  Analysts agree that a drop in property and casualty reserve releases is inevitable as soft-market pricing catches up with loss realities, and one report questions 2011 releases from recent accident years for longer-tail commercial lines.

• 2 Stifel Nicolaus Reports Point to Potentially Inadequate Reserves, Slowing of Prop-Cat Rate Increases

  By Mark E. Ruquet  |  June 11, 2012

  Two recent reports by the same analyst firm illustrate the unpredictability of the insurance-pricing cycle, as one report notes industry reserves are approaching inadequacy, while the other states that property-catastrophe rate increases, which had led the charge out of the soft market, appear to be slowing.