Seen at Insurance Journal (quoting an S&P press release):
“As 2007 has progressed, we have noted with increasing concern the rate deterioration across virtually all business lines. Although the absolute level of rate decline varies substantially by source—with insurance intermediaries suggesting higher average rate declines than are the insurers themselves or insurance buyers—one thing they do agree on is that the rate of deterioration is accelerating. Although companies are still reporting strong underwriting results, in large part because of another exceptionally low year for hurricane losses and the decline in adverse prior-year reserve development, we believe that the margin compression on business written in 2007 will become more evident in 2008.”
So, maybe in 2009 or 2010, consumer advocates will be obliged to give the “record profits” bogeyman a rest?