(Bloomberg) -- U.S. workers’ compensation insurers, a group ledby Travelers Cos. and Hartford Financial Services Group Inc.,posted their first underwriting profit since 2006, helping theindustry counter lower yields on bond portfolios.
Insurers had an underwriting profit of 2 cents per every premiumdollar, after claims costs and expenses, for a combined ratio of 98last year, according to preliminary data Tuesday from the NationalCouncil on Compensation Insurance, an industry group. That compareswith a combined ratio of 102 a year earlier and 109 in 2012.
Job-related injuries can emerge long after a policy is sold,meaning that insurers can invest premium dollars for years beforepaying claims. The companies have found it harder to count oninvestment income lately, leading them to be more selective aboutthe insurance risks they accept and to raise prices for some typesof coverage.
Continue Reading for Free
Register and gain access to:
- 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
© 2024 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.
