Despite a recent hardening of prices in the property/casualty industry, underwriting performance worsened during the first half of 2000, according to A.M. Best Co.’s six-month report.
The industry’s average combined ratio for the second quarter of 2000 was 111.2, compared to 107.3 for the same period in 1999. As a result, the first-half combined ratio deteriorated from 105.1 at June 30, 1999 to 109.2 in 2000, nearly a full point higher than A.M. Best’s original full-year forecast of 108.5.
A.M. Best stated that further deterioration could be expected as year-end loss-reserve reviews are completed. Consequently, A.M. Best had revised its full-year combined ratio projection to 110.0. The report, which can currently be viewed on the company’s website, www.bestweek.com/reports, will be published in the Sept. 18 edition of Best’s Viewpoint, an analytical supplement to A.M. Best’s weekly news publication, BestWeek.
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