Best’s Market Segment Report: AM Best Maintains Negative Outlook on U.K. Non-Life Market

LONDON--(BUSINESS WIRE)-- AM Best has maintained a negative market segment outlook on the U.K. non-life insurance market, supported by key factors that include persistent pressure on operating performance due to strong competition, legislative changes, ongoing political and economic uncertainty associated with Brexit and increased regulatory scrutiny of pricing practices.

A new Best’s Market Segment Report, titled “Market Segment Outlook: United Kingdom Non-Life”, states the profit margins of U.K. non-life insurers are likely to remain under pressure in 2019, largely due to strong price-based competition. This year, the market is also dealing with Brexit-related uncertainty, and the associated economic fallout is likely to have negative implications for U.K. non-life insurers’ investment earnings, claims inflation and premium volumes.

The report adds in spite of a challenging operating environment, the capital adequacy of insurers in the U.K. non-life market is generally robust. AM Best expects the U.K. non-life market to remain well-capitalised in spite of strong competition and legislative and economic uncertainty, aided by generally sound capital and risk management.

Factors that may lead to AM Best revising its U.K. non-life outlook to stable from negative include an improvement in underwriting performance, supported by better technical pricing and the positive impact of legislative reforms, as well as reduced economic uncertainty.

To access the full copy of this market segment report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=284061 .

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

Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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William Keen-Tomlinson
Financial Analyst

+44 20 7397 4395

will.keen-tomlinson@ambest.com



Catherine Thomas
Senior Director, Analytics

+44 20 7397 0281

catherine.thomas@ambest.com



Yvette Essen
Director, Research, Communications

& Media – Europe, Middle East & Africa

+44 20 7397 0322

yvette.essen@ambest.com



Edem Kuenyehia
Director, Market Development &

Communications

+44 20 7397 0280

edem.kuenyehia@ambest.com

Source: AM Best