|[February 11, 2013]
BestWeek: AM Best: 2012 US P/C Results Faring Fine Until Hurricane Sandy Socked East Coast
OLDWICK, N.J. --(Business Wire)--
Despite interest rate hurdles, the U.S. property/casualty industry was
enjoying a steadily firming rate environment and lower level of
weather-related losses in 2012 until Hurricane Sandy, according to a
special report in the latest issue of BestWeek U.S./Canada. On
Oct. 29 the East Coast was hit by what is likely to become the
second-costliest U.S. natural disaster.
The impact has been apparent on income statements throughout the
industry, with its underwriting loss increasing $26 billion and net
income deteriorating $10 billion during the fourth quarter, based on
A.M. Best's estimates of full-year 2012 results. However, the P/C
industry remains strongly capitalized, and it was able to easily
demonstrate that strength by absorbing the losses from Sandy. Still, new
challenges were created in the handling of the hurricane deductible and
what it means for the future, BestWeek reports.
--BestWeek Europe and BestWeek U.S./ Canada feature an
A.M. Best special report on the Eurpean captive industry, which has
weathered the global economic downturn well. However, the forthcoming
implementation of Solvency II remains among the biggest challenges for
--BestWeek U.S./Canada looks at how the Costa Rican insurance
market is developing since opening its market four year ago. Until then,
Instituto Nacional de Seguros was the only player in the market for 80
years. "As expected in a market that is opening up, there is increased
price and service competition, which has created an expanded marketplace
through greater awareness of insurance services," said Janet Hernandez,
a senior financial analyst for A.M. Best. "Nonetheless, INS is still the
dominant player by a vast majority and in our opinion will be somewhat
difficult to unseat."
BestWeek can be accessed on iPads and mobile devices at www.bestweek.com.
BestWeek is published by A.M. Best Co. for insurance
professionals. To subscribe, visit www.ambest.com/sales/BestWeek.
Founded in 1899, A.M. Best Co. is the world's oldest and most
authoritative insurance rating and information source. For more
information, visit www.ambest.com.
Copyright © 2013 by A.M. Best Company, Inc. ALL RIGHTS
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