NU Online News Service, June 13, 1:24 p.m. EDT

Recent news that U.S. commercial property and casualty rates fell 4 percent in May is a “significant credit negative” for the sector, according to Moody’s, and the issue will likely continue to plague casualty lines through the medium term.

In its Weekly Credit Outlook, Moody’s points to MarketScout’s recent announcement of a 4 percent drop in rates, and adds that this soft pricing, along with diminished reserve margins, the sluggish economic recovery and lower investment yields, creates an unfavorable environment for insurers that is squeezing profit margins.

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