RJ and Makay

>> Read More RJ & Makay Blog Posts

The U.S. property casualty (PC) insurance industry in 2011 reported its largest underwriting loss since 2006, according to insurance ratings agency A.M. Best.  The industry’s operating performance sharply deteriorated during last year as catastrophe-related losses mounted throughout the year.  Catastrophe events both here and abroad more than doubled the loss amount reported for 2010, A.M. Best said.

Despite all the economic and financial challenges of the past year, A.M. Best is maintaining stable outlooks on most areas of insurance for 2011, except commercial lines and health. Those two areas are being downgraded to "negative."

As a group, commercial lines, personal lines, and reinsurance have weathered the past few years fairly well. However, there's potential for downward rating pressure, especially in the commercial segment where loss-reserve adequacy has been eroding, A.M. Best says.