North American insurers given stable rating
Standard & Poor’s (S&P) has assigned a stable outlook to the North American insurance market, despite challenging trading conditions.
The ratings agency says modest first-quarter results for US personal insurers reflect the credit crisis, a sharp drop in investment income and severe winter weather-related events.
Despite this, S&P says the sector has underlying stability and predicts balanced rating movements over the year.
A similar outlook is expected in commercial lines although S&P says there has been price deterioration in some lines.
“If price declines continue at their current pace, we will likely revise the outlooks on some commercial lines insurers to negative in the second half of the year,” the report stated.
Overall first-quarter net income for the US property and casualty insurance industry fell 49.3% to $US8.2 billion ($8.54 billion) against the prior first-quarter period, says US risk information provider Insurance Services Office.
The ratings agency says modest first-quarter results for US personal insurers reflect the credit crisis, a sharp drop in investment income and severe winter weather-related events.
Despite this, S&P says the sector has underlying stability and predicts balanced rating movements over the year.
A similar outlook is expected in commercial lines although S&P says there has been price deterioration in some lines.
“If price declines continue at their current pace, we will likely revise the outlooks on some commercial lines insurers to negative in the second half of the year,” the report stated.
Overall first-quarter net income for the US property and casualty insurance industry fell 49.3% to $US8.2 billion ($8.54 billion) against the prior first-quarter period, says US risk information provider Insurance Services Office.