In another indicator foreshadowing invevitable insurance premium increases, Moodys Investors Service reports that 2011 third quarter net income for its rated companies is down 70% from 2010
Moody’s report comes shortly after a Fitch Ratings report noting that a group of 47 insurers and reinsurers it tracks reported a net profit of $9.7 billion during the first nine months of 2011 compaed to a net gain of $26.4 billion during the same period of 2010.
Moody’s indicates that it expects modest premium growth to continue as companies seek further rate increases.
While 2011 will be remembered for significant catastrophes, it may also be remembered for the industry reaching a modulation point for pricing after multiple years of declines.
Moody believes these challenges shouold help fuel further price increases for Property & Casualty insurers