Higher Property/Casualty Insurer Profits Expected in 2012
Posted:
Tuesday, January 17th, 2012
Category:
Insurance Training
A robust premium growth and better underwriting results are expected to boost U.S. property/casualty insurers’ profits in 2012, says Fitch Ratings Inc. following the release of the New York-based rating agency’s “2012 Outlook: Property/Casualty Insurance” report. In it, Fitch forecasts that 2012 will be a stable year for the industry since its capital position remains strong and that most insurers have enough capital to cope with “significant future adversity.”
The outlook sharply contrasts with the deep retreat in profitability for the industry in 2011, which was hamstrung by poor underwriting performance and declining rates of return on investment promoted. Fitch, however, expects the property/casualty industry’s profitability to rebound strongly next year. That should be a boost for those who have an insurance license and those who are already working to renew their licenses via insurance continuing education.
Fitch explains that core underwriting results will improve and that catastrophe losses will return to average following heavy catastrophe-related losses during 2011.
The rating agency also cautions that the commercial lines segment of the industry is likely to shift to a negative outlook in the near term “relative to personal lines given differences in recent results and fundamental pricing trends.”
Fitch cautions that a major catastrophe, investment market dive, or more underwriting losses could result in a negative industry outlook.
In Texas, LearnInsurance.com, e-learning hub 360training.com’s insurance portal, provides the necessary Texas insurance continuing education and Texas adjusters license online program for the state’s insurance agents.
