AM Best News

No Class of 2023: Why Capital Is Sitting on the Reinsurance Sidelines

Until investors can be convinced that property-catastrophe reinsurance pricing has caught up with recurring event losses, they’ll continue to sit on the market sidelines, a market executive said recently. During an AM Best Reinsurance Briefing, Aditya Dutt, president of Aeolus …

Jan. 1 Renewals: ‘They Got Done’; Carrier Overreliance on Reinsurers Corrected

When an AM Best analyst said, “Apparently, things didn’t go that bad” to describe 1/1 reinsurance renewals, he wasn’t actually saying anything unique. Carlos Wong-Fupuy, a senior director for AM Best, who spoke during an online briefing on Monday, referred …

AM Best Downgrades California Earthquake Authority Credit Ratings

AM Best downgraded the Financial Strength Rating (FSR) to B++ (Good) from A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) to “bbb+” (Good) from “a-” (Excellent) of California Earthquake Authority. The outlook of the Long-Term ICR has been …

AM Best: Historic California Flooding Highlights Need for Robust Private Flood Market

Private flood insurance accounts for over 40% of California’s entire flood market—a significantly larger share than in the other leading states, according to AM Best. A new AM Best commentary notes the ongoing flooding issues in the state will present …

AM Best Downgrades Mid-Hudson Group

Insurer analysts at AM Best have downgraded the ratings of three companies in the Mid-Hudson Group citing a 32.7% decline in policyholder surplus as of September 30. AM Best downgraded the Financial Strength Rating (FSR) to B++ (Good) from A- …

AM Best: Commercial Lines ‘Stable’ With a Close Eye on Inflation

As a whole, the outlook for the U.S. commercial lines segment continues to be stable, according to AM Best, but the industry rating agency had some warnings in its latest report. Rate changes at renewal remained strong, catastrophe losses have …

Collapse of FTX Provides ‘Sobering Warning’ for Insurers About Governance Failings

The collapse of the cryptocurrency exchange FTX demonstrates the dangers of failures of corporate governance, according to a commentary published by AM Best. While FTX is not an insurance company, the series of events leading to its collapse should provide …

AM Best Assigns Positive Segment Outlook to MGAs, Other DUAEs

Technology, talent and diverse sources of capital continue driving growth for managing general agencies and other delegated underwriting authority enterprises globally, according to AM Best, which assigned a positive outlook to the delegated underwriting authority enterprise (DUAE) sector Monday. The …

A Near-Term Return to Underwriting Profit in Auto ‘Highly Unlikely’: AM Best

Apparently nothing has changed within the last several months to change AM Best’s negative outlook on the U.S. personal lines insurance segment. Tuesday the insurance industry rating agency said it was maintaining its view, first revised in September, primarily because …

‘Droves’ of Global Re Market Entrants Unlikely; Outlook Stable: AM Best

Will 2023 reinsurance renewals mark a turning point to a “true hard market” that attracts “new capital in droves” and expands supply? Analysts from AM Best raised the question in a new Best’s Market Segment Report published Wednesday, titled “Market …