After many years of losses, underwriting performance for the workers’ compensation line generated a significant profit in 2015, according to a new report from Fitch Ratings. Competition is heating up however and Fitch expects a return to an underwriting loss by 2017 in the workers’ compensation (P/C) line. The underwriting combined ratio for comp dropped from a recent cyclical high of 117 percent in 2011 to 95 percent in 2015. Premium revenue growth tapered more recently, but averaged more than 5 percent for the last three years and was 3.5 percent in 2015. In the recent economic recession, workers’ compensation business suffered from weak pricing and significant declines in segment premium volume. The underwriting response to 2010 and 2011 losses, combined with improving economic conditions, led to a sharp increase in written premium volume.
Read the full overview from WorkCompWire (and access the report) here.