A.M.BestTV: U.S. Surplus Lines Sector Sees Merger and Acquisition Spurt

OLDWICK, N.J.--(BUSINESS WIRE)-- This episode of “First Monday” looks at how the U.S. surplus lines sector has become an attractive merger and acquisition (M&A) target, according to A.M. Best Senior Financial Analyst Robert Raber. Click on http://www.ambest.com/v.asp?v=fmsurpluslines915 to view the entire program.

September’s final “First Monday” episode focuses on the sweeping changes that are taking place in the global reinsurance market. “First Monday” is A.M. Best’s monthly program featuring commentary by the company's leading analysts.

The core competencies of the successful U.S. surplus lines industry, which include product diversification and underwriting discipline, haven’t changed much during this period of economic instability. However, like the rest of the insurance industry, the U.S. surplus lines sector has not been a stranger to M&A activity.

“M&A activity has definitely been helpful for the companies that have been able to complete their transactions,” said Raber. “However, M&A is really a symbol of the profitability of the line. Most of the carriers running U.S. surplus lines are focused on the bottom line. In seven of the last 10 years, they have recorded underwriting profitability.”

“Additionally, U.S. surplus lines have really help commercial lines, since U.S. surplus lines are really a subset of the commercial lines business,” continued Raber. “In the last 10 to 20 years, both lines have grown and expanded to very healthy premium levels. In 2014, U.S. surplus lines grew to 14% of the total commercial lines direct premiums written, making it the highest level A.M. Best has ever seen.”

A.M.BestTV will be reporting from the National Association of Professional Surplus Lines Officers' annual convention beginning on Sept. 10.

Recent episodes of A.M.BestTV include:

• Competition Ramps Up in Canada Property/Casualty Industry: Senior Financial Analysts Jacqueline Lentz and Joel Silverthorn discuss some of the hot-button issues in the Canadian property/casualty market; such as, merger and acquisition activity, Ontario automobile rates and the overland flood coverage: http://www.ambest.com/v.asp?v=fmcanadapc915.
• Canada Life Writers Seek Out Growth Possibilities: A.M. Best Managing Senior Financial Analyst Richard McMillan and Senior Financial Analyst Edward Kohlberg explore growth strategies by Canadian life insurance writers amid the low interest rate environment: http://www.ambest.com/v.asp?v=fmcanadalife915.
• Surplus Lines Industry Adapts, Restructures and Networks: Preview of the upcoming National Association of Professional Surplus Lines Officers’ annual convention that is taking place from Sept. 9-11, in San Diego, CA: http://www.ambest.com/v.asp?v=surpluslines915.
• Reinsurance: It’s Not Your Father’s Market Anymore: A.M. Best Vice President Robert DeRose discusses a Best’s Special Report on the global reinsurance industry: http://www.ambest.com/v.asp?v=globalre915.

A.M.BestTV covers exclusive A.M. Best information and reports, targeted topics and key developments in the (re)insurance industry every Monday, Wednesday and Friday. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html. View A.M.BestTV episodes at http://www.ambest.tv.

A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2015 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

View source version on businesswire.com: http://www.businesswire.com/news/home/20150909006349/en/

A.M. Best
Lee McDonald, 908-439-2200 ext. 5561
Group Vice President, Publication and News Services
[email protected]

Source: A.M. Best

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