A.M. Best maintains stable outlook for personal, reinsurance market segments; negative for commercial

A.M. Best is maintaining stable outlooks for both the U.S. personal lines and reinsurance markets, but the outlook for the commercial market is negative amid catastrophes and competition.
U.S. personal lines continue to benefit from solid performance in auto insurance, reported A.M. Best. And commercial lines are carrying on the struggle to turn pricing decisively upward.
“Balance sheets remain strong but susceptible to threats in both segments,” A.M. Best said in a press release.
“Despite numerous challenges, A.M. Best’s rating outlook on the global reinsurance segment is being held at ‘Stable,’ supported by continued strong risk-adjusted capitalization, prudent enterprise risk management practices and an improving pricing environment across a broadening spectrum of business classes.”
These strengths should provide reinsurers the ability to successfully navigate future obstacles that may arise from increasingly uncertain and turbulent global macroeconomic conditions that currently confront the industry, the release continued.
A stable outlook implies that the majority of 2012 rating actions for the market segment are likely to be affirmations, with a fairly balanced distribution of negative and positive rating actions.
A negative outlook implies that negative action ratings will outnumber positive rating actions during the year.