The Market Turns (Despite the Political Bashing to the Contrary)

Seen at Insurance Journal:

The Reinsurance Association of America (RAA) released reinsurance underwriting results for the six months ending June 30, 2008. The RAA reported policyholders’ surplus of $72.8 billion for a group of 20 U.S. property casualty reinsurers, compared to $77.3 billion for the same period in 2007. […]

Through June 30, 2008, the combined ratio for the group was 97.5 percent, deteriorating from the 90.0 percent combined ratio for the same period in 2007. The combined ratio is attributable to a 68.0 percent loss ratio and an expense ratio of 29.5 percent. For the same period in 2007, the loss ratio was 62.8 percent and the expense ratio was 27.2 percent.

Now, while reinsurance represents just one aspect of the property/casualty insurance market,  this probably adds support to the evidence accumulated from production reports, and underwriters’ and producers’ experience – that the risk-aversion the p&c market experienced a few years ago, after two remarkable hurricane seasons, is easing.  Pricing is weakening in some markets, combined ratios are eroding…and presumably the industry is has fallen (or is falling) from the pace needed to set “record profits”.

Of course, politicians and consumer advocates don’t seem to be easing their allegations that insurers make “too much” money.

It’s good to be loved.