OLDWICK, N.J., December 13, 2023–(BUSINESS WIRE)–Six U.S. property/casualty companies became impaired in 2022, all of which were placed into insolvent liquidation, according to an AM Best report.
These six insurance company impairments identified in the U.S. property/casualty industry in 2022 follow 17 in 2021 and had been impacted by catastrophe losses resulting from hurricanes, primarily in Louisiana and Florida, according to the report. In addition to identifying impairments that occurred in 2022, this report also includes information on other impairments that occurred from 2000 to 2021 first identified by AM Best this year.
The Best’s Special Report, titled, “2022 US Property/Casualty Impairments Update,” states that from 2000 to 2022, 419 property/casualty insurers became impaired. These impairments consisted of 354 insolvent liquidations and 64 rehabilitations, 22 of which were closed during the period; 42 remained open as of this report. In addition, there were 57 conservatorships, 56 of which led directly to either rehabilitation or liquidation.
During the 2000-2022 period, workers’ compensation insurers accounted for 24% of the impairments. Personal lines insurers accounted for 30%, split between private passenger auto (19%) and homeowners (11%). Commercial lines insurers accounted for 23% of impairments, with other liability/commercial multiperil accounting for 14% and commercial auto making up 8%. The remaining 23% was split among specialty lines.
To access a copy of this report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=338635.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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