Allstate, Travelers, and others see profits rise as AM Best and Moody’s see “stable” market

Both AM Best and Moody’s have given the U.S. personal lines insurance segment a “stable” rating for 2021. This rating comes as consumers are expected to see lower auto insurance premiums but marginally higher home insurance costs. The auto premiums decreases are the result of reduced travel due to stay-at-home and work-from-home mandates from governments and employers.

AM Best and Moody’s see personal insurance as “Stable”

Aligned with the rating, insurers are reporting continued improved revenues. Allstate has surpassed estimates by over 70%, on average, in the last two quarters. Travelers reported income of $1.3 billion in the fourth quarter, up from $867 million a year earlier. The increase is attributed to returns from investments, lower catastrophe claims and a net written premiums rise 3%.

For more on the AM Best and Moody’s rating https://www.investopedia.com/market-outlook-rated-stable-for-personal-lines-insurance-say-am-best-moody-s-5097171