Fourth-quarter catastrophe losses are expected to be manageable for the U.S. insurance industry as the impact of economic and social inflation on loss costs and pricing will remain key topics for commercial lines insurers, according to a report Friday from BofA Securities Inc., a global brand for BofA Global Research.
The Friday note added that substantial pandemic losses are not anticipated. “We do not expect material losses from the COVID-19 pandemic for P&C carriers,” BofA Securities Inc said in its Friday report.
Brokers can expect to see “solid” organic growth on an improving macroeconomic backdrop and a favorable year-over-year comparison given more limited economic activity in fourth quarter last year. Margins, however, are modeled to see “modest expansion.”
The report also noted challenges to the insurtech sector “following a quarter of stark stock underperformance.”
BofA Securities’ modeled results for individual companies varied widely.
For Chubb Inc., “We expect $428 million