A.M. BEST REPORTS WEAK P/C RESULTS

A new A.M. Best Co. report reveals that property/casualty results for both the fourth quarter and full year 2000 continued to weaken, especially in the reinsurance sector. The industry reported a combined ratio of 115.0 for the fourth quarter 2000, compared to 112.1 for the same period in 1999. Reinsurers reported a combined ratio of 122.8 for the fourth quarter and 116.4 for the year. A.M. Best indicated that commercial lines results had been heavily influenced by years of pricing deterioration resulting in adverse loss reserve development at many publicly traded groups. In addition, the personal lines segment reported fourth quarter and full-year combined ratios of 114.5 and 110.3, respectively. It was also indicated that despite rate hardening in commercial lines during the latter part of 2000, net premiums for the total p/c industry only rose 4.9 percent during the fourth quarter and the full year. A.M. Best stated that weak underwriting results are expected to continue throughout 2001 before mildly improving in 2002.