Q1 P/C Results Build On 2003 Profit Surge
Thursday, June 24th, 2004 Liability PropertyThe property/casualty industry continued to build on the operating momentum achieved during 2003, as the industry reported an underwriting gain during the first quarter of 2004. Further, very strong operating results and favorable equity-market conditions boosted the industry‘s surplus beyond the record levels achieved at year-end 2003, according to an A.M. Best Co. special report. According to the report, the continued generation of operating profits certainly is welcomed after several years of pricing increases that for some time were eroded by adverse loss-reserve development, high reinsurance costs and reductions of investment income, before they could reach the bottom line in the form of profits. A.M. Best believes that the biggest challenge facing insurers will be to maintain market discipline in light of flattening premium rates and increased surplus levels.
