Brighter year ahead for insurers

Ratings agency AM Best says 2013 is likely to better than 2012 for US property and casualty insurers and reinsurers.

Best said 2012 was on track to be better than 2011 when Superstorm Sandy hit in October,

It says the hurricane is likely to become the second costliest US natural disaster behind Hurricane Katrina.

Impact

The company said in a press release: “The impact has been apparent on income statements throughout the P/C industry, with the industry’s underwriting loss increasing $26 billion and net income deteriorating $10 billion during the fourth quarter, based on A.M. Best’s estimates of full year 2012 results.

“Sandy’s impact notwithstanding, several signs point to?improved results in 2013. Net premiums written (NPW)?continue to increase, as does policyholders’ surplus. The?pricing environment is expected to improve in 2013,?although rate increases may be smaller in magnitude.”

AM Best said the personal lines segment has maintained a stable outlook while the commercial lines segement will retain uts negative outlook for 2013.

The reinsurance sector maintained a stable outlook thanks to continued strong risk-adjusted capitalization.