Moody’s gives stable outlook for UK P&C sector

Share This Post

Share on facebook
Share on linkedin
Share on twitter
Share on email

Robust capital levels and good operating performance has helped the UK property and casualty insurance sector secure a stable outlook from Moody’s Investors Service.

Moody'sIn a report published today, Moody’s notes that the sector has achieved an average operating margin of between 8% and 9% in recent years, while pre-tax profit slightly improved in the first half of 2019.

“UK P&C insurers’ capitalisation remains robust, helping insurers deal with intense competition, rising claims costs and potential technological disruption,” said Helena Kingsley-Tomkins, an assistant vice president at Moody’s.

“Insurers’ operating performance is good for now, and the sector’s profitability remains good, although may deteriorate over the coming year.”

Nonetheless, Moody’s adds that while insurers’ operating performance is good now, pressure is mounting.

Investment income is being suppressed by persistently low interest rates and underwriting margins are being squeezed as high claims inflation in the motor insurance business outpaces price increases.

The industry also faces uncertainty related to regulatory reforms and earnings contributions from reserve releases set to fall, the report adds.

While incumbent insurers are continuing to invest in technology to sustain market positions and profit margins but, the outcome of these initiatives are highly uncertain.

.pf-button.pf-button-excerpt { display: none; }

The post Moody’s gives stable outlook for UK P&C sector appeared first on ReinsuranceNe.ws.

Are you starting an INDEPENDENT agency?

Get Your Agency StartUp Checklist Today

More News

NOAA - Tropical Weather Updates
Tropical Weather Updates

Tropical Storm Lidia Graphics

5-Day Uncertainty Track last updated Tue, 03 Oct 2023 14:51:13 GMT Wind Speed Probabilities last updated Tue, 03 Oct 2023 15:29:42 GMT

NOAA - Tropical Weather Updates
Tropical Weather Updates

Tropical Storm Lidia Forecast Discussion Number 2

Issued at 900 AM MDT Tue Oct 03 2023 932 WTPZ45 KNHC 031450 TCDEP5 Tropical Storm Lidia Discussion Number 2 NWS National Hurricane Center Miami