P&C to deteriorate until 2020
Friday, 07 14 2017, Category: Insurance and Reinsurance, Country: United States
Keefe, Bruyette & Woods (KBW) has warned that rising loss ratios, lower reserve releases, and normalised catastrophe losses will maintain underwriting pressure across the North American Property & Casualty (P&C) sector to at least 2020, in a recent equity research note.
KBW analysts have revealed that it’s updated its North American P&C industry earnings model following the release of ISO’s first-quarter 2017 results.
Following the update, KBW expects returns in the sector to decline through 2019, driven by a continuation of the low-interest rate environment, declining reserves, and normalised losses from weather events, all of which signals further deterioration of underwriting margins for insurers and reinsurers.