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Outlook for Personal Lines Stable, A.M. Best Says

More frequent and severe weather-related events are creating a volatile business environment for the property-insurance line, but favorable results in auto are offsetting some of the negative impact, leading A.M. Best to maintain a stable outlook for the personal-lines segment...
February 13, 2013

P&C Personal Lines PerformanceMore frequent and severe weather-related events are creating a volatile business environment for the property-insurance line, but favorable results in auto are offsetting some of the negative impact, leading A.M. Best to maintain a stable outlook for the personal-lines segment.

“Although property line volatility continues to be a drag on overall results, it has not materially weakened the segment’s overall capital position, and auto results continue to be stable despite some margin compression,” says A.M. Best in its latest Review/Preview analysis.

The analysis notes that as of the 2012 third quarter, personal-lines insurers had been reporting “considerable improvement” in results due to a lack of catastrophe losses relative to 2011. “However,” the ratings agency says, “with Superstorm Sandy making landfall in the fourth quarter, the potential for a ‘below-average’ catastrophe loss year was quickly erased.” – more

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