Best's Market Segment Report: AM Best Revises Outlook on UK Non-Life Insurance Segment to Stable From Negative

APRIL 29, 2024 08:20 AM (EDT)

Best's Market Segment Report: AM Best Revises Outlook on UK Non-Life Insurance Segment to Stable From Negative

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FOR IMMEDIATE RELEASE

LONDON - APRIL 29, 2024 08:20 AM (EDT)
AM Best has revised its market segment outlook on the United Kingdom's non-life insurance segment to stable from negative.

In its new Best's Market Segment Report, "Market Segment Outlook: UK Non-Life Insurance", AM Best cites a number of drivers for the move, including falling inflation, which should ease the upward pressures on claims costs.

In addition, significant price corrections in personal lines should pave the way for close to breakeven underwriting results, while market conditions in the commercial and specialty sector are expected to remain favourable. Higher interest rates should also allow the market to lock in robust investment returns for the short-to-medium term.

Moderating factors include the increased cost of reinsurance, which has led a number of insurers to restructure their protection and increase their retentions. This has increased the risk of potential earnings volatility and uncertainties around the outcome of the upcoming Ogden rate review.

To access a complimentary copy of this market segment report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=342429.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising 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.