Insurer Upgrades & Downgrades — AM Best Downgraded 39 in 2023

Personal lines insurers had a tough 2023. In its US Property/Casualty Downgrades Outpace Upgrades in 2023 report, AM Best dropped the credit ratings of 39 personal lines insurers last year. That’s twice the number of downgrades of 2022.

Things didn’t go much better for commercial insurers and one reinsurer. Best dropped the credit ratings of the one reinsurer and 15 commercial insurers.

Add it all together and it totals 55 downgrades for 2023 compared to 30 in 2022.

AM Best industry analyst, Helen Anderson said auto carriers accounted for 24 of the 39 downgrades. Many downgrades were due to operating performance, the business profile and risk management.

“Declines in capitalization and deteriorating operating performance drove the rating downgrades in the personal lines segment,” Anderson said.

The upgrades were fueled by better support from the parent organization for for companies getting melded into higher-rated units.

Here are the totals:

Personal lines

2023 upgrades: 9

2023 downgrades: 39

2022 upgrades: 10

2022 downgrades: 18

2022 to 2023 upgrade change: -1

2022 to 2023 downgrade change: 21

Commercial lines

2023 upgrades: 21

2023 downgrades: 15

2022 upgrades: 26

2022 downgrades: 11

2022 to 2023 upgrade change: -5

2022 to 2023 downgrade change: 4

Source link: Insurance Journal —

Source link: Insurance Business America —

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