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Falling rates in finpro and increased competition in property drove the trend. -
Commercial property pricing rose 11%, while personal auto grew 21.9%.
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Broker earnings reflect shifting tailwinds, with margins revealing the real winners.
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The drivers are not surprising, but the extent of development is, execs said.
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Property rate increases decelerated to 6% in Q4, compared to 7% in Q3 and 10% in Q2 2023.
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Rates are generally cheaper than the admitted market.
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The average 2023 premium renewal rate change for commercial property was significantly higher than 2022 across all months.
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The broker’s Q4 programs reinsurance change led to a one-time $19mn charge that will allow it to reduce its PML exposure.
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Organic growth will slow from historically elevated levels and the increased cost of debt will take its toll.
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The brokerage reported that polled carriers, however, have pointed to ransomware activity reverting to 2019 levels to argue current pricing is unsustainable.
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A “return to minimal valuation increases can be expected soon”, the broker wrote in its 2024 P&C market outlook report.
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European rates on line increased by 7.60%, while in the US prices were up 5.25%.
