|[July 01, 2014]
A.M. Best Special Report: U.S. P/C Impairments Dropped Sharply in 2013, But Alternative Risk Players Faltered
OLDWICK, N.J. --(Business Wire)--
Financial impairments in the U.S. property/casualty (P/C) industry in
2013 plunged to their lowest level since 2007, amounting to little more
than half of both the historical average and the 2012 impairment count.
The 14 known P/C impairments in 2013, compared with 25 in 2012, were
more in line with figures seen consistently during the 1970s. This
report gives descriptions of the P/C 2013 impairments, and also updates
A.M. Best's historical P/C Financially Impaired Companies' database for
1969 through year-to-date 2014.
While 2013 P/C impairments were well below the historical average count,
they continued to far exceed life/health impairments, which reached an
all-time low of one in 2013. To date, four P/C impairments have been
reported for 2014.
The P/C industrys 2013 financial impairment frequency (FIF)-a more
accurate indicator of impairment trends than a mere count-was 0.43%,
below the industry's historical average of 0.81%. The 2013 figure was
near levels recorded during the 1970s-except for 1975, when the FIF
spiked to 1.09% following the trough of a soft market and an economic
recession. In the current era, the 2011 FIF of 1.05% seems to have
marked the peak for impairment frequency following the 2007-2010
soft-market trough and the 2007-2009 recession.
To access a copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=226381
A.M. Best Company is the world's oldest and most authoritative
insurance rating and information source. For more information, visit www.ambest.com.
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