S&P Report Notes Slower Growth in U.S. P/C Surplus

April 1, 2005

Standard & Poor’s Ratings Services has published a report comparing the past two years of U.S. P/C surplus growth, titled “U.S. Property/Casualty Surplus Growth Slows In 2004.”

S&P credit analyst Alan Koerber noted: “Although the property/casualty (P/C) industry will post a strong growth in surplus in 2004 based on preliminary returns, the total dollars in growth and percent increase is less than that in 2003. P/C surplus in 2004 is expected to show about 15 percent growth after all companies have reported their year-end totals, compared with more than 20% growth in 2003.”

S&P notes that factors in the 2004 surplus gain include “strong net income growth over 2003 offset in part by weakness in investment market returns, growth in shareholders’ dividends, and reduced parental contributions to companies’ surplus.”

The report is available to subscribers of RatingsDirect, S&P’s Web-based credit research and analysis system, at: www.ratingsdirect.com. If you are not a RatingsDirect subscriber, you may purchase a copy of the report by calling (1) 212-438-9823 or sending an e-mail to research_request@standardandpoors.com. Ratings information can also be found on Standard & Poor’s public Web site at www.standardandpoors.com; under Credit Ratings in the left navigation bar.

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