Huge Insurer Impairments Revealed

Catastrophe losses were the driving force behind the 17 impairments of US property & casualty insurers in 2021, according to a new report by AM Best.

AM Best defined impairments as ‘situations in which a company has been placed, via court order, into conservation, rehabilitation or insolvent liquidation.’

Seven of the impairments that took place in 2021 were caused by hurricanes, mainly in Louisiana and Florida.

Furthermore, among the 17 insurance companies that became impaired during the year, 16 were placed into liquidation.

Along with five companies based in Louisiana and two in Florida, the impairments identified in 2021 included four commercial auto insurers and a pair of Vermont-based risk retention groups.