A.M. BestTV: Surplus Lines Sector Grows, But Not All Competitors, Says A.M. Best Senior Analyst

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)-- In this ^A.M.BestTV episode at the 2017 Wholesale & Specialty Insurance Association's Annual Marketplace, David Blades, senior industry analyst, A.M. Best, discussed a recent Best’s Special Report on the U.S. surplus lines insurance sector, which stated that the industry showed continued growth in 2016. However, he said, most of that growth was driven by a handful of U.S. insurers and Lloyd's organizations. Click on http://www.ambest.com/v.asp?v=blades917 to view the entire program.

“The report addresses the overall state of the surplus lines market, as well as how it is being impacted by market consolidation and emerging issues, which are coming out in the surplus lines companies that are providing insurance solutions for them,” said Blades. “Additionally, the report focuses on the overall operating performance of the surplus lines industry and its solvency record, since in the past 13 years, there have been no insolvencies.”

At the conference, which previously had been called the NAPSLO Annual Convention, Blades also highlighted the role market competitiveness has had on the surplus lines sector.

“Competitiveness has definitely impacted the bottom line of surplus lines companies. Most of the long-term surplus lines stalwarts have shown discipline when the market rates have gone down to the point where they are impacting operating results. Those companies have shown the discipline to step back and allow overall top-line premium growth to go out the door a little bit, trying to preserve their overall operating performance and returns,” he said.

Blades added that A.M. Best views the surplus lines industry as being stable.

To access a copy of the special report, titled, “Surplus Lines Continue to Overcome Market Pressures,” please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=265317.

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Rendez-Vous: Reinsurance Outlook Remains Negative, but With Possible Upsides, Say A.M. Best Leading Analysts: Stefan Holzberger, senior managing director and chief rating officer, and Greg Carter, managing director, analytics, A.M. Best, reviewed the outlook for the reinsurance sector and how recent catastrophes could affect the market at the annual Rendez-Vous de Septembre conference: http://www.ambest.com/v.asp?v=rvs3917.
Rendez-Vous: Global Reinsurers See More Than Catastrophe Risk on Horizon: Reinsurers and related professionals gathered at the annual Rendez-Vous de Septembre conference say risks such as mortgage and cyber are capturing industry attention: http://www.ambest.com/v.asp?v=rvs1917.
Surplus Lines Pricing Encounters the Market's 'Rocky Bottom': Indications show accelerating growth for the excess and surplus sector, driven by a growing economy, shifting energy sector and pricing trends that may prove to be unsustainably low: http://www.ambest.com/v.asp?v=wsiapanelrecut917.

^A.M.BestTV covers exclusive A.M. Best information and reports, targeted topics and key developments in the (re)insurance industry every Monday, Wednesday and Friday. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html. View ^A.M.BestTV episodes at http://www.ambest.tv.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.