July 17, 2007
| Contact: | Anne Steinberg Kitchen Public Relations, LLC 212-687-8999 anne@kitchenpr.com |
Conning Research: Property-Casualty Insurance Forecast Through 2009 Released
Hartford, CT, July 17, 2007 - Property-Casualty insurers had a banner year in 2006 due to relatively light catastrophes. Yet while, 2007 is certainly off to a good start, the next two and a half years will likely be pressured by a return to more normal catastrophe activity. A combination of deteriorating premium rate adequacy, increasing loss severity, and limited growth in investment yields will add to the pressure, according to the most recent forecast of the property-casualty industry by Conning Research and Consulting.
"2006 underwriting results were a watershed for the property-casualty industry. The combined ratio dropped to 92.5 percent. The implied GAAP return on equity was a remarkable 13.6 percent, with a positive cash flow of over $58 billion. Policyholder surplus grew $64 billion or 14.5 percent to $506 billion," said Stephan Christiansen, director of research at Conning Research & Consulting, Inc. "Premiums grew at a modest 4.4 percent. That imbalance, along with a strong loss reserve position, is fueling the potential for a competitive market."
The Conning Research study, "Property-Casualty Forecast & Analysis" identifies the key drivers of the industry and forecasts industry growth and performance for 2006-2009.
Conning's "Property-Casualty Forecast & Analysis" is available for purchase from Conning Research & Consulting by calling (888) 707-1177 or by visiting the company's web site at www.conningresearch.com.
About Conning Research & Consulting, Inc.
Conning provides insurance industry analysis to insurers and industry stakeholders. The Conning name has represented excellence in independent insurance industry research for 50 years. As a result of its wealth of experience and intimate knowledge of the insurance industry, Conning understands industry challenges and opportunities and provides in-depth insights and analyses on a wide range of industry products and issues. Conning is headquartered in Hartford, CT.
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