AM Best: Solid Profits, Uncertain Future for Comp Line

Credit rating agency AM Best said in a new market segment report that workers’ compensation carriers have generated solid profits in recent years but face an uncertain future. Annual underwriting profit in the comp line of business averaged $4.8 billion over the last five years, “a level of profitability unmatched by any of the other major property/casualty lines,” AM Best said. The net loss ratio has ranged from 45.4% to 49% over the last five years, reflecting the benefits of better workplace safety as well as legislative changes that reined in claim costs. The combined r...