Liberty Mutual Chief Executive Officer Edmund “Ted” Kelly, in explaining why predictions of a hardening market have not materialized, likened property/casualty insurers to alcoholics who swear off drinking until they come to the next saloon. As reported by A.M. Best’s Best Wire, Kelly said it was logical for prognosticators to think there would be a “little more sanity” in pricing at the start of the year but “common sense and property/casualty insurance are mutually contradicting,” he said during a conference call to discuss second-quarter earnings.
Kelly said Liberty Mutual continues to walk away from business it thinks is not adequately priced. Nearly 80% of rate filings during the second quarter in automobile lines were for rate increases. The insurer also continues to look for rate increases in the homeowners market, which he described as “very intense.” Kelly said significant catastrophe losses continue due to storms in the Midwest and the company is seeking rate increases to match the risk.
Liberty Mutual CEO Questions P/C Pricing Sense (Best Wire 7/29/09)
August 4, 2009