Underwriting profits dip for surety and fidelity

Article Abstract:

Surety and fidelity insurers registered an underwriting profit for the seventh straight year in 1994, but their combined profits after dividends plunged 25.8%, to $370.1 million, from $498.7 million in 1993. The entire loss occurred in the surety sector, which registered a profit decline of 52%, to $141.5 million. Fidelity profits increased 11%, to $228.5 million. The loss was the result of a large number of claims among large underwriters.

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Lower claims boosted 1995 underwriting profits

Article Abstract:

Surety underwriting profits increase significantly in 1995, despite flat results in fidelity underwriting during the same time period. Surety line insurers posted a 95.8% increase in underwriting profits to $276.9 mil in 1995 and dividends for both lines increased by almost 38% during that time period. Declining commission and brokerage expenses contributed to the strong results.

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Underwriting losses persisted in 1994

Article Abstract:

General liability underwriting losses reached $4.8 billion in 1994. This large amount resulted from minimal premium growth, a need to increase reserves and large incurred losses. The legal interpretation of policy coverage was much broader than insurance companies had planned which made loss estimates very difficult to forecast.

Property & Liability Insurance, Economic aspects, Property and casualty insurance, Liability insurance

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