Standard & Poor's Ratings Services has revised its outlook on the U.S. commercial lines property-casualty insurance sector to negative from stable as rates are expected to continue to decrease for another year.
In a statement, S&P's credit analyst John Iten explained that "our decision to revise the sector outlook reflects our concern over two issues--the ongoing decline in pricing for commercial lines and decreases in investment income."
Price competition persists across virtually all commercial lines, with prices continuing to decline, albeit at a somewhat moderated pace in the second quarter, S&P said. Based on industry pricing surveys and information that companies provided in their second-quarter earnings releases, the New York-based rating firm said it believes pricing in the second quarter for renewal business declined at a mid-single-digit rate in most lines and at a low-double-digit rate for new business.
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
