Declining reserves denting the earnings of global P&C
Tuesday, 08 22 2017, Category: Insurance and Reinsurance, Country: World
Reserve releases in the P&C sector slowed in the second-quarter of 2017, a trend that is expected to persist and intensify through the remainder of the year, eating into companies’ earnings, according to analysis from Morgan Stanley.
Morgan Stanley analysts warned earlier in 2017 of a $2.5 billion P&C sector reserve deficit, predicting reserves to decline further as the soft market environment persists. And now, analysts have noted further deterioration in the second-quarter of 2017, with a number of P&C carriers tracked by Morgan Stanley missing earnings in Q2, driven in part by slower reserve releases.