A.M. Best Revises 2008 Projections

Ratings agency A.M. Best has issued a revised year-end 2008 forecast for the U.S. property/casualty industry’s underwriting results. Due to continued price softening, challenging market conditions, unusually high catastrophe losses in the first half and significant underwriting losses reported by mortgage and financial guaranty insurers, A.M. Best now believes the overall industry’s combined ratio will increase to 103.2, up from its initial projection of 98.6 published in January 2008. The agency explains that in the first six months of 2008, catastrophe and storm losses added approximately five points to the industry’s overall combined ratio, while losses linked to mortgage and financial guaranty insurers added an estimated two points. The revised outlook also estimates that net premiums written (NPW) will decrease 0.7 percent, relatively unchanged from the initial projection of a 0.6 percent decrease. Check out further I.I.I.  commentary on industry financials.  

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