A.M. Best Negative Rating Actions 2023 – 1Q2024
It is now common knowledge that calendar year 2023 was a difficult one for property insurers, whether those focused on personal lines (homeowners and auto physical damage) or commercial lines (fire and/or commercial multi-peril) coverages. The inflation overhang from a spike in costs across the economy starting in 2021, combined with an extension of large weather-related losses across a broader swath of the U.S. and a hardening of reinsurance rates/lack of reinsurance capacity, led to outsized underwriting and operating losses for a growing number of insurers exposed to property risks. Especially hard hit were single-state and regional insurers with less geographical and line-of-business diversification.
