13 US P/C Companies Impaired in 2023: AM Best

Thirteen U.S. property/casualty companies became impaired in 2023, 10 of which were placed into insolvent liquidation, according to an AM Best report.

The insurance company impairments identified in the U.S. property/casualty industry in 2023 follow six reported impairments in 2022.

In addition to identifying impairments that occurred in 2023, the latest Best’s Special Report also includes information on other impairments that occurred from 2000 to 2022 first identified by AM Best this year.

Five insurers were impacted by catastrophe losses, while another four impairments were private passenger auto writers, according to the report.

Four of the five companies impacted by catastrophe losses were affected by severe convective storms, primarily in the Midwest and South.

Two other impairments were insurers that had been in run-off for many years – a commercial multi-peril writer, primarily in California, impacted by adverse loss reserve development, and a small Missouri-based fire writer that was unable to generate revenue to cover operating expenses.

The report indicated 432 P/C insurers became impaired between 2000 and 2023, with 364 insolvent liquidations and 66 rehabilitations – 43 were closed during the period and 23 remained open as of this report.

In addition, there were 59 conservatorships, 57 of which led directly to either rehabilitation or liquidation, AM Best said.

During the 2000-2023 period, workers’ compensation insurers accounted for 23% of the impairments.

Personal lines insurers accounted for 31%. Commercial lines insurers accounted for 22% of impairments, with other liability/commercial multi-peril accounting for 14% and commercial auto making up 8%.

The remaining 23% was split among specialty lines.

Topics USA AM Best Property Casualty