Best: U.S. P/C Industry Notes First Underwriting Profit Since '78
National News • April 25, 2005
The U.S. property/casualty industry reported improved operating results in 2004 for the second straight year, but for the first time since 1978, underwriting results were profitable, with a ...
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Subject: P&C combined
Posted On: April 26, 2005, 1:28 pm CDT
Posted By: Jimbo
Comment:
This industry can not stand prosperity, nor will regulators allow it.
The current crop of top executives have not learned from past mistakes, and have begun price cutting already. A prudent underwriter will not write an account at a premium that will lose money, but we're already seeing this from Erie, PMA, Penn National and others. The combined ratio is an "underwriting profit" not including investment income. Don't these people understand this concept? No wonder the regulators are refusing rate increases when we continually cut prices and cry that the rates are inadequate.
As for regulators, look at the Blues in PA. The legislators were calling for the Blues to return a large portion of their surplus, and the Insurance Department was actually investigating doing it. I guess they don't know what surplus is for.
When the industry shoots itself in the foot again (and it will happen), just hope it's with a .22 caliber and not a howitzer.
Subject: P&C combined
The current crop of top executives have not learned from past mistakes, and have begun price cutting already. A prudent underwriter will not write an account at a premium that will lose money, but we're already seeing this from Erie, PMA, Penn National and others. The combined ratio is an "underwriting profit" not including investment income. Don't these people understand this concept? No wonder the regulators are refusing rate increases when we continually cut prices and cry that the rates are inadequate.
As for regulators, look at the Blues in PA. The legislators were calling for the Blues to return a large portion of their surplus, and the Insurance Department was actually investigating doing it. I guess they don't know what surplus is for.
When the industry shoots itself in the foot again (and it will happen), just hope it's with a .22 caliber and not a howitzer.