Tag: AM Best

Why AM Best Predicts a Profitable 2025 for US Commercial Insurance Market

Angela Linders
US Commercial Insurance Market

AM Best Maintains Stable Outlook for U.S. Commercial Insurance in 2025 AM Best has reaffirmed its stable market segment outlook for the U.S. commercial insurance sector heading into 2025. This positive assessment is attributed to the segment’s strong underwriting performance and better investment returns, contributing to solid operating profitability. While challenges persist, insurers in this sector demonstrate resilience and adaptability, supported by sound risk-adjusted capitalization. Strong Underwriting Performance and Reserve Adequacy The U.S. commercial lines segment has benefited from favorable underwriting results, with combined ratios averaging in the mid-90s over…

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State Farm Faces Unprecedented Claims Surge as Hurricane Beryl Breaks Records

Marc
State Farm Claims soar from hurricane damage

Hurricane Beryl Smashes Records, Unleashing Insurance Claim Surge Hurricane Beryl has left an unprecedented mark in its wake, driving State Farm to handle over 16,000 insurance claims—a record for the company. This surge in claims was set off when Beryl struck Texas, marking the first U.S. landfall of the 2024 Atlantic Hurricane season, according to a report by AM Best. The financial fallout from this historic storm is projected to reach into the billions, reflecting widespread damage to properties and vehicles across multiple states. Initially impacting the U.S. as a…

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State Farm General Downgraded by AM Best Amidst Weakening Balance Sheet

Live Insurance News
State Farm Insurance Building - A downgrade to B

Overview of State Farm Downgrade In a move that has caught the attention of policyholders and investors alike, AM Best has downgraded the Financial Strength Rating (FSR) of State Farm General Insurance Company (State Farm General). This marks a significant shift from an ‘A’ (Excellent) rating to a ‘B’ (Fair) classification, while the Long-Term Issuer Credit Rating (Long-Term ICR) dropped from “a” (Excellent) to “bb+” (Fair). Implications of Ratings – Balance Sheet Strength Assessed as Weak The Credit Ratings issued by AM Best take into account a variety of factors…

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Global insurance industry will feel “substantial impact” from Russian invasion of Ukraine

Nordstrom
Global insurance industry - Globe - fracture

AM Best has released a forecast regarding the effect the invasion is expected to have worldwide. The Russian invasion of Ukraine is expected to have a “substantial impact” on the global insurance industry, according to a forecast by AM Best. The invasion is expected to add to the already existing inflationary pressures economies worldwide are facing. The AM Best rating agency recently announced that the global central banks’ efforts, joined by those of the United States Federal Reserve, for controlling inflation will face additional challenges due to Russia’s invasion of…

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Terrorism insurance program overdependence not recommended by A.M. Best

Julie Campbell
Terrorism Insurance

The rating agency has said that this tendency could lead to a considerable problem in the United States. A.M. Best, the large rating agency, has provided insurers with a bold recommendation, which is not to build an overreliance on whether or not there is a reauthorization of the terrorism insurance program in the United States. The future of that program remains up in the air and A.M. Best feels that it is wiser not to completely rely on it. The agency feels that insurers should not count on the Terrorism…

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