AM Best


A.M. Best Special Report: Polar Vortex Chills Industry's Profitability, But Policyholders' Surplus Continues to Rise


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Jennifer Marshall
Assistant Vice President
(908) 439-2200, ext. 5327
jennifer.marshall@ambest.com


Christopher Sharkey
Manager, Public Relations
(908) 439-2200, ext. 5159
christipher.sharkey@ambest.com

Jim Peavy
Assistant Vice President, Public Relations
(908) 439-2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

OLDWICK - JULY 15, 2014 09:14 AM (EDT)
Increased catastrophe and weather-related claims led to an increase in losses for the U.S. property/casualty industry in the first quarter of 2014, causing underwriting and net income to decline compared with last year's results. Despite increased losses, the industry posted another quarter of profitable underwriting producing a combined ratio of 96.4, up from 92.7 for the first quarter of 2013.

The decline in net income, combined with a drop in unrealized capital gains, resulted in a smaller increase in policyholders' surplus (PHS) during the first quarter of 2014 than was achieved in the first quarter 2013. However, PHS increased during the first quarter of 2014 to a record $671.8 billion. After tax return-on-equity also fell to 2.1%, from 3.7% in the first quarter of last year.

For the purposes of this report, data of companies in A.M. Best's mortgage guaranty and financial guaranty composites are excluded.

To access a copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=226832 .

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