P&C insurance rates are rising, and pricing momentum is expected to continue through 2012, but some observers say increases might moderate in 2013 and that the industry will not see a hard market marked by strong underwriting profitability.
In a Special Comment on Q2 earnings published Aug. 20, Moody's Investors Service says insurers have seen strong earnings growth through the first half of the year, driven by lower catastrophe losses and increased premium growth. Moody's says rate increases broadened in the second quarter relative to the first, leading to a 6-percent year-over-year increase in net written premiums, up from a 4-percent increase in the first quarter.
The ratings agency adds that companies may "turn up the dial on rate increases" as the year progresses due to an expectation of moderating reserve releases.
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
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.
