A.M. Best Study: P/C Industry's Risk-Adjusted Capital Drops in '08

January 2010
Best's Review;Jan2010, Vol. 110 Issue 9, p10
Trade Publication
The article reports on the study conducted by A.M. Best Co. concerning the risk-adjusted capitalization experienced by the property/casualty industry in the U.S. Based on a proprietary capital model, it indicates that the industry has experienced a 17% decline in 2008, driven mainly by a combination of 60 billion dollar drop in policyholders' surplus. It also states that most the downward pressure was cushioned by the excess capital built up from several years of surplus growth.


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