Actuaries – the eternal optimists

Update: An earlier version suggested that every accident year was inadequate. Reader GB points out that the article I cite almost certainly refers to the adequacy of the loss reserve on the balance sheet each year end. My misunderstanding also led me to wonder why the article dwelt on asbestos and environmental reserves, but with [...]

Q3 earnings updates

Adding Berkshire Hathaway, Nationwide, and Progressive at the link.

Catching up on earnings

Many, many apologies for not keeping up with Q3 earnings announcements. The blackout put me behind on multiple projects, and I’m just now getting my head back above water. I’ll catch up bit by bit. Today: Zurich, Allstate, AIG and Liberty Mutual. Just follow the link.

Aon: Homeowners’ rates still too low

Largest U.S. HO insurers would return 4.8% on equity, according to the Aon’s latest. That’s down from last year’s projection of 6.9%. Reasons: Lower investment returns and higher projected cat losses. That’s not an adequate return on capital, the A-Team says. Here’s a link to the press release. I can’t find the actual study. Here’s [...]

Interest rates and the hard market

Sector and Sovereign Research has an interesting take on the importance of investment income (or, these days, the lack thereof) in insurance pricing: For most investors, this is truly a no-brainer: lower yields mean pricing must go up, full stop.  For managements, the issue is more complex, and it is not at all clear that [...]

Preliminary cat reports – an update

Montpelier pegs Q3 cat losses at $80M $70M. Details on the web page at the top left corner of the blog.

The Week in a Minute, Oct. 11, 2011

Well, this is late, but calling it “The Last Week and a Half in a Minute or So” sounds lousy. I was testifying for Insurance Information Institute last week about proposals to reform Michigan’s no-fault insurance law. Michigan has the nation’s most expensive no-fault, by far. Changes would institute limits – currently Michigan no-fault benefits [...]

Aon: Reinsurer capital grew a sliver in Q2, down for the year

Highlights from the first half study of the the 28 large insurers that make up the Aon Benfield Aggregate: Global reinsurer capital totaled US$445B at June 30. That’s 5% less than at year-end but 1% higher than at Q1.That number includes shareholder funds and non-traditional forms of capital. Shareholders funds fell 1.7% in the first [...]

SNL: Q2 P-C underwriting result is worst since 2001

The P/C industry is reporting a 117.7 combined ratio for Q2, SNL Financial reports (sub. req., I think). That’s the worst result since third and fourth quarters of 2001, when the industry booked 121 and 120, respectively. How bad? The second-quarter combined ratio easily topped that of other problematic periods for the industry in recent [...]

Second quarter earnings update

Updated links to earnings from Hanover and Hannover Re (no relation). Also Nationwide.