Inflation and catastrophes negatively impacted statutory
financial results for auto and home insurers
NEW
YORK, July 18, 2023 /PRNewswire/ -- The U.S.
Property and Casualty (P&C) Insurance Performance Rankings
published by S&P Global Market Intelligence, an inaugural
annual ranking of the 100-largest P&C carriers in the country,
found that companies focused on covering risks that are difficult
to place in the traditional market distanced themselves from peers
in key metrics measuring earnings, underwriting profitability,
balance sheet growth and other indicators of success.
The U.S. Property and Casualty Insurance Performance Rankings
are based on statutory financial results collected and compiled by
S&P Global Market Intelligence. They are determined using 13
financial metrics from 2022 statutory filings grouped into six
buckets: rates of return, underwriting profitability, balance sheet
expansion, investment performance, prior-accident-year reserve
development and premium growth.
The categories are given distinct weightings to calculate
performance scores for each of the 100-largest U.S. P&C
entities based on 2022 net premiums written. Similar calculations
are used to rank the largest entities determined by S&P Global
Market Intelligence to have commercial and personal lines-focused
operations. This breakout is intended to recognize standout
performances by carriers operating in market segments where overall
financial results faced significant macroeconomic headwinds.
Kinsale Insurance Co., the Richmond,
VA-based primary operating subsidiary of Kinsale Capital
Group Inc., ranked as the top performing U.S. property and
casualty insurer. Kinsale Insurance writes a diversified mix of
casualty, property and professional lines business focused on
small- and mid-sized business customers. Four of the eight top
performers, including Kinsale,
specialize in excess-and-surplus lines (E&S) business: RLI
Corp., W. R. Berkley Corp. and James River Group Ltd.
"Excess-and-surplus lines insurers, which focus on niche markets
that require specialized underwriting expertise and risk-appetite,
continue to grow rapidly as they supply urgently needed property
insurance capacity in coastal regions and remain leading providers
of liability coverage for a wide range of unique risks," said
Tim Zawacki, principal research
analyst at S&P Global Market Intelligence. "The U.S.
Property and Casualty Insurance Performance Rankings, which gave
several leading E&S carriers top marks for both growth and
profitability, suggest that public and private investors' recent
enthusiasm for this business model has been well-placed."
Only three personal lines carriers ranked among the top 50
performers as inflation and natural catastrophes led to poor
financial results for carriers focused on the personal auto and
homeowners insurance businesses. Progressive Corp. scored
highest among personal lines-focused companies as it uniquely
produced a combination of strong top-line growth and underwriting
profitability in its personal auto business in 2022.
Click here for more information on the S&P Global
Market Intelligence U.S. Property and Casualty Insurance
Performance Rankings. For a copy of the report, please
contact press.mi@spglobal.com.
S&P Global Market Intelligence's opinions, quotes, and
credit-related and other analyses are statements of opinion as of
the date they are expressed and not statements of fact or
recommendation to purchase, hold, or sell any securities or to make
any investment decisions, and do not address the suitability of any
security.
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SOURCE S&P Global Market Intelligence