AM BestTV: Rated U.S. Property/Casualty Mutual Insurers See Improved Results, Says AM Best Senior Financial Analyst

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)-- In this ^AMBestTV episode, Kimberly Muccia, senior financial analyst, AM Best, said fewer catastrophe losses in 2018, along with better underwriting performance by smaller mutuals, led to better overall results for AM Best-rated U.S. property/casualty (P/C) mutual insurers. Click on http://www.ambest.com/v.asp?v=mutuals919 to view the entire program.

AM Best-rated U.S. P/C mutuals sharply improved their underwriting performance in 2018. Muccia addressed the drivers behind the sector's net income last year, which tripled to more than $20 billion.

“The improved operating performance was largely driven by the sector’s improved underwriting performance,” said Muccia. “There were less catastrophe losses in 2018, as more normal weather patterns in territories that mutuals operate in helped to improve the bottom line.”

Muccia also highlighted how mutuals can further their innovation.

“Innovation is definitely becoming increasingly more critical to all organizations, and the mutual segment is no exception. However, some of the smaller ones might not have innovation in their expense budget to invest in third-party resources. Nonetheless, one of the ways they could focus on innovation is through the use of cross-functional training. They could utilize the ideas of their employees and look at the obstacles that they are facing. By organizing, as well as prioritizing these ideas, it could help their companies adapt to the changing market dynamics.”

To access a copy of this market segment report, titled, “U.S. Property/Casualty Mutual Insurers:

Underwriting Results Improve; Challenges Remain,” visit http://www3.ambest.com/bestweek/purchase.asp?record_code=289910.

For full coverage of the recent National Association of Mutual Insurance Companies’ (NAMIC) annual convention, please visit http://www.ambest.tv/namic19.

Recent ^AMBestTV episodes include:

From the InsureTech Connect Conference: Application Program Interfaces Help Fuel the Insurtech Boom: A panel of insurance technologists examines the growth and advantages of application program interfaces: http://www.ambest.com/v.asp?v=apipanel919.
Energy Risks Dominate MENA Reinsurance Sector, Says AM Best Director: Salman Siddiqui, director of analytics, AM Best, said large European insurers are key players in the Middle East, with local reinsurers playing a follower role: http://www.ambest.com/v.asp?v=globalremena919.
From the InsureTech Connect Conference: Insurtech Women Founders Say Profitability Builds Trust: Jennifer Byrne, co-founder and president, Quesnay; Carey Anne Nadeau, founder and chief executive officer, ODN; and Kate Terry, co-founder and chief operating officer, Surround Insurance, said the ranks of women in insurtech may be small, but creativity, resourcefulness and industry knowledge build impact: http://www.ambest.com/v.asp?v=diversityinsurtechpanel919.
From the WSIA Annual Marketplace:E&S Crystal Ball Shows Higher Rates, More Risk Sharing, Social Inflation Ahead: Attendees said that while they remain positive about what the future holds for the excess and surplus lines industry, insurers still need several years of price firming to make up for years of cutting: http://www.ambest.com/v.asp?v=wsia2919.

^AMBestTV covers exclusive AM Best and insurance industry information and reports, targeted topics and key developments in the insurance, reinsurance and related sectors daily. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html. View ^AMBestTV episodes at http://www.ambest.tv.

AM Best is a global credit rating agency and information provider with an exclusive focus on the insurance industry. Visit www.ambest.com for more information.