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2008 U.S. Commercial Lines Outlook: Earnings Still Strong, But Weaker Prices Should Start To Hit Bottom Lines Nov 07
Standard & Poors, Nov 2007
Abstract
Another very profitable year for commercial lines insurers, sparked by yet another exceptionally mild hurricane season, is emerging for the entire U.S. property/casualty industry. Unless there's a major negative surprise in December, 2007 earnings for commercial lines companies will approach the record level achieved in 2006. Balance-sheet strength for most insurers, driven by higher statutory surplus and diminished concerns about reserve adequacy, will also continue to improve. Still, we are not popping champagne corks just yet. 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...
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
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