P/C Industry Has Improved Operating Results
Tuesday, April 13th, 2004 Liability PropertyThe property/casualty industry reported vastly improved operating results for both the fourth quarter and full year 2003 when compared with the same periods of 2002, according to a study issued by A.M. Best Company. Additionally, the industry reported a sorely needed jolt to the bottom line, as total surplus rose sharply by an estimated 22.2 percent during 2003, propelled by strong underwriting results and a noticeable upturn on Wall Street. As was the case during each of the quarterly reporting periods in 2003, the 9 percent annual percentage change in net premium writings represents a deceleration in premium increases from the reported full calendar year 2002. A.M. Best contends that this is hardly good news for insurers in several market segments, given how poorly accident years 1997-2001 were priced, which is evidenced by the adverse loss-reserve development attributed to these accident years.
