With all the “sophistication” that has been created around large account casualty business and other commercial lines, it is reassuring that homeowners, underwritten carefully, with a careful understanding of aggregate management may produce the opportunity for profits for the next five years.
Five years of profitable Homeowners? Not likely. After a year or two of profit we will see prices dropping to gain more market share. With the Stock Market rebounding it will be back to “cash flow”
underwriting, until all of a sudden they are losing money again.
With all the “sophistication” that has been created around large account casualty business and other commercial lines, it is reassuring that homeowners, underwritten carefully, with a careful understanding of aggregate management may produce the opportunity for profits for the next five years.
Five years of profitable Homeowners? Not likely. After a year or two of profit we will see prices dropping to gain more market share. With the Stock Market rebounding it will be back to “cash flow”
underwriting, until all of a sudden they are losing money again.