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BestWeek: A.M. Best Report Finds P/C Insurers Post First Drop in Net Premiums Since 1943
OLDWICK, N.J.-(Business Wire)-April 18, 2008 - In 2007, the U.S. property/casualty industry experienced its first decline in net premiums written since the World War II era, according to a new A.M. Best special report, "U.S. Property/Casualty — 2007 Financial Review."
Driven by across the board softening in personal and commercial lines pricing, leakage of premium and a growing interest in alternative forms of risk transfer, net premiums written fell nearly 1.0% to $446.0 billion, the first drop since 1943, according to the report, featured in BestWeek U.S./Canada.
Meanwhile, the industry reported an underwriting profit for the second consecutive year, falling short of the $32.0 billion gain in 2006, yet posting a $22.1 billion net. A strong fourth quarter capped a solid 2007 for the industry, but net income fell almost 7% to $66.5 billion from the $71.3 billion recorded in the prior year. The after-tax return on equity slipped to 13.0% from 15.3% posted in 2006.
Also, in BestWeek U.S./Canada:
The treasury yield curve spiked to its recent steepest levels in first quarter 2008 as liquidity concerns and aggressive Federal Reserve interest rate cuts were particularly influential in driving down short-term yields, according to a new A.M. Best special report.
Also, in BestWeek Europe:
Matt Lawford is a broker with Chesterfield Insurance Brokers, which places business into both Lloyd's and the London company market. As a specialist in television commercial insurance, he has encountered some unusual requests from clients.
And in both editions of BestWeek:
The Best's Global Insurance Composite Index finished the week of April 17 down 11.7% from a year ago. The composite index reflects the performance of 169 insurance stocks. The week's top stocks were National Western Life Insurance Co., Atlantic American Corp., Meritz Fire & Marine Insurance Co., Marsh & McLennan Cos., and Old Republic International.
The bottom five stocks were Independence Holding Co., Universal American Corp., Omega Insurance Holdings, National Security Group, and Brit Insurance Holdings.
BestWeek is published by A.M. Best Co. for insurance professionals. To subscribe, please call A.M. Best's customer service department at (908) 439-2200, ext. 5742, or e-mail your request to customer_service@ambest.com.
Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.
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