This is an excellent article; well written and fairly comprehensive and clear. However, there are a few points to mention to clarify the author’s points.
GAAP results imply calendar year results, and this should be clarified for readers who do not have a strong financial background as regards insurance stats. Accident year results are a better indicator of the pricing levels and competition that is mentioned several times. Reserve redundancies help results, but only when they are released into the income statement. Pricing and competition reflect gross results, and GAAP reflect net results. So, it would be helpful to know if reinsurance renewal rates helped or hindered 2010 results relative to 2009.
It would be interesting to know what portion of all P&C companies’ underwriting profits rose, or remained constant relative to 2009 at 6 months; e.g. 5%… as the title alludes to that observation. And, did expense ratios improve, remain steady, or deteriorate? …Buy the full report, I guess?
Minor criticisms aside, this was a pleasantly concise, informative read.
This is an excellent article; well written and fairly comprehensive and clear. However, there are a few points to mention to clarify the author’s points.
GAAP results imply calendar year results, and this should be clarified for readers who do not have a strong financial background as regards insurance stats. Accident year results are a better indicator of the pricing levels and competition that is mentioned several times. Reserve redundancies help results, but only when they are released into the income statement. Pricing and competition reflect gross results, and GAAP reflect net results. So, it would be helpful to know if reinsurance renewal rates helped or hindered 2010 results relative to 2009.
It would be interesting to know what portion of all P&C companies’ underwriting profits rose, or remained constant relative to 2009 at 6 months; e.g. 5%… as the title alludes to that observation. And, did expense ratios improve, remain steady, or deteriorate? …Buy the full report, I guess?
Minor criticisms aside, this was a pleasantly concise, informative read.