U.S. Property & Casualty Insurers Headed for Rough Patch, Finds S&P Global Market Intelligence Analysis
New Research Projects Acceleration of Industry Underwriting Profit Erosion in 2016
NEW YORK, July 25, 2016 /PRNewswire/ -- For property and casualty insurers, 2016 could be a tough year, according to a new report published today by S&P Global Market Intelligence, a leading provider of multi-asset class research data and insights. The firm's 2016 U.S. P&C Insurance Market Report suggests that a combination of elevated catastrophe losses, unfavorable results in the private passenger auto business, and declining bond yields could crimp underwriting results and reduce overall profitability. Using a bottom-up analysis of statutory financials for almost 2,700 individual, U.S.-domiciled property and casualty entities filing NAIC statements, this report tracks performance over a 10-year period ending in 2015. Both historical and projected results are offered on a line-of-business basis in order to capture diverging trends across industry product types and produce projections that encapsulate how micro and macro factors affect growth rates, losses, and expenses. The report illustrates historical and projected pre-tax returns on equity (ROE) by business line. Following are some of the key observations:
"Profit margins are projected to be much narrower than they have been in the last few years, in the absence of any potential market-changing events," according to Tim Zawacki, Senior Editor and Terry Leone, Manager of Insurance Research at S&P Global Market Intelligence and the authors of the report. "While insurers have wisely accounted for the fact that they haven't been able to depend on investment gains to subsidize underwriting losses, they still need to practice restraint as they seek growth." The S&P Global Market Intelligence report 2016 U.S. P&C Insurance Market Report is available through this link. About S&P Global Market Intelligence S&P Global Market Intelligence is a division of S&P Global (NYSE: SPGI), which provides essential intelligence for individuals, companies and governments to make decisions with confidence. For more information, visit www.spglobal.com/marketintelligence. Copyright © 2016 by S&P Global Market Intelligence, a division of S&P Global. All rights reserved. The information contained in this Press Release and any referenced reports are for information purposes only. S&P Global Market Intelligence Parties assume no obligation to update the information contained herein or in any referenced reports ("Content") following publication in any form or format. The Content is provided on an "as is" basis. To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/us-property--casualty-insurers-headed-for-rough-patch-finds-sp-global-market-intelligence-analysis-300303003.html SOURCE S&P Global Market Intelligence |
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