OLDWICK, N.J.--(BUSINESS WIRE)-- The workers’ compensation industry is continuing a downward underwriting performance trend and hasn’t yet shown signs of pulling out of it, according to new statistical analysis by A.M. Best Co. in this week’s BestWeek U.S./Canada.
As the wider property/casualty sector has begun to rebuild along with the slowly recovering U.S. economy, workers’ comp hasn’t. It had strong years going into 2005 and 2006, according to the A.M. Best special report, “U.S. Workers’ Compensation — 2009 Market Review,” but the past three years have seen a steady decline in premiums, affecting all 50 states.
Also in BestWeek, if U.S.-based Prudential Financial Inc.’s acquisition of two Japanese life insurance companies of American International Group Inc. is cleared, it could become the largest foreign life insurance company in Japan based on in-force life insurance. Prudential, the second biggest U.S. life insurer, said it would buy AIG Star Life Insurance Co. Ltd. and AIG Edison Life Insurance Co. from AIG for $4.8 billion. Prudential would be the largest foreign life insurance company in Japan based on in-force life insurance, Steven Schwartz, an equity analyst with Raymond James, told BestWeek.
In addition, BestWeek includes an exclusive interview with Bermuda’s top insurance regulator, who said one silver lining of the financial crisis is its improved communication among regulators. “It’s important for regulators to be coordinated. It’s important for regulators to be sharing information. It’s important for regulators to have a common base in terms of the evaluation of a company,” said Jeremy Cox, chief executive officer of the Bermuda Monetary Authority. The coverage also features a video interview with Cox.
BestWeek is published by A.M. Best Co. for insurance professionals. To subscribe, visit http://www.ambest.com/sales/BestWeek.
Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.
A.M. Best Co.
Caroline Saucer, 908-439-2200, ext. 5774
Source: A.M. Best Co.