US Insurance to See Property Pricing Headwinds in Q2, RBC Says
Marsh (MRSH), American International Group (AIG), and other US insurance intermediaries and carriers in the property and casualty sector will be negatively impacted by property pricing headwinds in Q2, RBC Capital Markets said in a Monday note that previewed the quarter for the US insurance industry. Recent reinsurance renewals have implied that aggressive competition will continue, amid the renewal seasonality being the highest in Q2, the firm said. RBC analysts expect insurance executives to remain negative during the quarter's earnings calls as data continues to indicate downward pressure on property insurance prices, according to the note. The analysts also anticipate some risk of negative growth surprises for insurance carriers due to property seasonality, as well as limited organic growth for brokers. However, several large property insurance carriers are testing rate adequacy, which could pave the way for the slowing of price reductions into 2027, the analysts added. For RBC's Q2 preview, intermediary and mortgage insurer revisions were fairly small, while carriers in general saw cuts due to notable Severe Convective Storm activity in April and June, as well as.
Marsh (MRSH), American International Group (AIG), and other US insurance intermediaries and carriers in the property and casualty sector will be negatively impacted by property pricing headwinds in Q2, RBC Capital Markets said in a Monday note that previewed the quarter for the US insurance industry.
Recent reinsurance renewals have implied that aggressive competition will continue, amid the renewal seasonality being the highest in Q2, the firm said.
RBC analysts expect insurance executives to remain negative during the quarter's earnings calls as data continues to indicate downward pressure on property insurance prices, according to the note.
The analysts also anticipate some risk of negative growth surprises for insurance carriers due to property seasonality, as well as limited organic growth for brokers.
However, several large property insurance carriers are testing rate adequacy, which could pave the way for the slowing of price reductions into 2027, the analysts added.
For RBC's Q2 preview, intermediary and mortgage insurer revisions were fairly small, while carriers in general saw cuts due to notable Severe Convective Storm activity in April and June, as well as.