A.M. BestTV: U.S. Surplus Lines Sector Weathers Challenging Year, Say A.M. Best Analysts
OLDWICK, N.J.--(BUSINESS WIRE)--Sep 21, 2018--In this A.M. BestTV episode, David Blades, senior research industry analyst, and Robert Raber, senior financial analyst, both of A.M. Best, said surplus lines writers managed to generate a collective profit in 2017 despite higher-than-expected weather-related claims. Click on http://www.ambest.com/v.asp?v=surpluslinesreport918 to view the entire program.
The surplus lines market notched its sixth consecutive year of premium growth in 2017. This occurred at a higher level than in 2015 and 2016 and despite competitive pressures. Blades highlighted A.M. Best’s stable outlook for the sector and the rationale for that outlook.
“Basically, surplus lines insurers and intermediaries continue to show resiliency through tough market conditions and a tough year in 2017 from weather-related catastrophes,” said Blades. “However, given the weather-related losses in 2017, surplus lines insurers still managed to generate 5.8% in terms of top-line direct premium volume growth.”
Raber discussed the role mergers and acquisitions have played in the sector.
“There is a lot of consolidation going on in the industry,” said Raber. “Because of the profitability in the surplus lines sector, companies that want to advance their market position, share or branding are looking at opportunities to add other surplus lines companies to the current surplus organization.”
To access a copy of this market segment report, titled, “Surplus Lines Push Through Various Headwinds to Enhance Growth,” visit http://www3.ambest.com/bestweek/purchase.asp?record_code=278125.
A.M. BestTV will be covering The Wholesale and Specialty Insurance Association Meeting (WSIA) being held at the Marriott Marquis and Hyatt Regency on Sept. 23-26 in Atlanta, GA. For full video coverage of the WSIA conference, including exclusive executive interviews, click on the “Conferences 2018” tab at http://www.ambest.tv.
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SOURCE: A.M. Best
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PUB: 09/21/2018 02:38 PM/DISC: 09/21/2018 02:38 PM