Industry Financial Condition Strong Despite Price Deterioration
(Hartford, CT) July 14, 2008 – The financial condition of the property-casualty industry is strong; and, it should be able to withstand the current price deterioration, according to a new Property-Casualty Industry Forecast by Conning Research and Consulting.
“The outlook for the next three years -through 2010- is generally soft for the property-casualty industry as a whole. We project continued deterioration in underwriting margins and implied return on equity,” said Clint Harris, analyst at Conning Research & Consulting. “However, the largest year-over-year increase in combined ratio is in 2008, and while this reflects a return to normal catastrophe losses, much of this deterioration is self-inflicted, as premium prices and premium rate adequacy continue to fall.”
The Conning Research study, “Property-Casualty Forecast & Analysis” identifies the key drivers of the industry and forecasts industry growth and performance for 2007-2010.
“Looking beyond this year, our forecast contains a somewhat more optimistic view of 2009 and 2010 because we anticipate a modest rebound in the economy and also a moderating competitive environment. We project a return to net premium rate increases beginning in some lines as early as 2009,” said Stephan Christiansen, director of research at Conning. “In fact, we are already beginning to observe some insurers taking corrective actions in their markets because of poor results.”
“Property-Casualty Forecast & Analysis” is available 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.
Conning Research & Consulting provides insurance industry analysis to insurers and industry stakeholders. Its published research includes market coverage of 30 segments of the industry in addition to industry forecasting and identification and analysis of major strategic issues. Conning Research & Consulting understands insurance industry challenges and opportunities and provides in-depth analyses on a wide range of industry products and issues. The Conning name has represented excellence in independent insurance industry research for 50 years. Conning Research & Consulting is a division of Conning, a provider of asset management and insurance industry research and consulting services to insurers. Conning is headquartered in Hartford, CT.Tags: outlook, report, Valen Analytics