Conning Research Forecast: Continued Strong Property-Casualty Insurance Performance Through 2007

Record capital growth will lead to increasing competition despite catastrophes

(Hartford, CT) November 3, 2005 – Property-casualty insurance industry results should be relatively strong from 2005 through 2007, despite 2005’s hurricane activity and an increasingly competitive market, according to a new report by Conning Research and Consulting, Inc.

“While the effects of the 2005 hurricane season will be dramatic, and are not yet fully realized, we still anticipate that industry-wide property-casualty insurers will report strong results for the 2005-2007 period, with industry-wide ROE’s above 7%,” said Clint Harris, analyst at Conning Research & Consulting. “Property-casualty industry performance will degrade somewhat over the next three years due to increasing price competition, but it will still be strong by historical standards.”

The Conning Research report, “Property-Casualty Forecast & Analysis by Line of Insurance-Third Quarter 2005,” provides projections of key underwriting and financial results for the entire property-casualty industry as well as the major lines of business, including personal auto, homeowners/farmowners, commercial auto, workers’ compensation, commercial multiperil, general liability, non-proportional reinsurance, medical malpractice, fire & allied, and inland marine.

“Our detailed forecast for the property-casualty industry and its major lines of business has been modified in the third quarter edition with an increased expectation for losses,” said Stephan Christiansen, director of research at Conning Research & Consulting. “Conning’s forecast varies by line of business but generally assumes increasing competition in 2005 for most lines of business and accelerating price competition for a number of commercial lines in 2006, with a possible continuation to 2007 for some. While the catastrophes will mitigate price competition in severe windstorm exposed areas, the broader trend is toward continued softening. “

“Property-Casualty Forecast & Analysis by Line of Insurance-Third Quarter 2005” is available for purchase by annual subscription from Conning Research & Consulting, Inc., by calling (888) 707-1177 or by visiting the company’s web site at

About Conning Research & Consulting, Inc.

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 has offices in New York and Hartford.