Would Be Second Consecutive Year of Underwriting Profit After 25-Year Drought
(Hartford, CT) May 10, 2005 – The property-casualty industry can look forward to another year of underwriting profits, assuming normal catastrophic losses of $13-14 billion, according to a new study by Conning Research and Consulting, Inc. However, the analysis by Conning Research suggests that 2006 may not be as rosy.
“Higher prices, tighter covers and more effective deductibles are the key contributors to industry performance in the 2004-2005 period,” said Stephan Christiansen, director of research at Conning Research and Consulting. “Despite a softening market, we fully expect that the underwriting profits of 2004 will continue at least into 2005.”
The Conning Research report, “Property-Casualty Forecast & Analysis by Line of Insurance: First Quarter 2005,” presents a three-year forecast for the key lines of business and the P-C industry as a whole. Many insurers use the quarterly Conning Forecast as a benchmark for planning purposes.
“Of course, despite the stunning performance of personal lines, led by Homeowners, and the strong performance of a number of commercial lines, particularly Commercial Automobile, softening market conditions will ultimately begin to chip away at the industry’s record performance,” said Christiansen. “Our analysis suggests that 2006 will be the first year of deterioration.”
“Property-Casualty Forecast & Analysis by Line of Insurance: First Quarter 2005” is available on an annual subscription basis for purchase from Conning Research & Consulting, Inc., by calling (888) 707-1177 or by visiting the company’s Web site at www.conningresearch.com.
About Conning Research & Consulting, Inc.
The Conning name has represented excellence in independent insurance industry research for more than 90 years. As a result of its wealth of experience and intimate knowledge of the insurance industry, Conning understands industry challenges and opportunities and can provide in-depth insights and analyses. Conning provides both public and proprietary research as well as consulting services to the financial services industry. Conning is headquartered in Hartford, CT. www.conningresearch.com.