reinsurance
P/C insurance suffers worst underwriting loss since 2006Posted by RJ and Makay on Feb 07, 2012 |
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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.
Allied World Assurance Co. Holdings and Transatlantic Holdings, Inc. called off their merger today in the face of overwhelming opposition, and Transatlantic said it might remain independent despite two higher offers currently on the table. Shareholders were to vote on the Allied deal next Tuesday, but it was anticipated that they would vote against it.
Hurricane Irene, which left 22 people dead in the eastern part of the U.S., caused $5 billion to $7 billion in damage. The storm’s estimated cost to insurers is estimated to be between $1.5 billion and $3 billion, according to Jose Miranda of Eqecat, Inc., a California risk management firm. This compares to damage projections last week of $14 billion when Irene was expected to make landfall in New York as a Category 2 hurricane.
