P-C 3rd Qtr Good, But Worries Ahead
Tuesday, December 16th, 2003 Liability PropertyProperty casualty insurers in the third quarter improved premium growth and underwriting results as rate increases decelerated and adverse loss reserve developments appeared, A.M. Best Co. said. The Oldwick, N.J.-based rating firm observations came in its report "P-C Industry Reports Strong Third-Quarter 2003 Results.” Best said the industry‘s strong premium growth and “vastly improved underwriting results” during the first three quarters of 2003 resulted from annual price hikes and enhanced underwriting fundamentals in three main sectors: reinsurance, commercial lines and personal lines. The rating firm also noted that rate hikes, rigid policy terms and coverage restrictions applied through the past several renewals sharply reduced the industry‘s underwriting losses, to $5.2 billion during the 2003 first nine months, down from $19 billion in losses one year ago.
