Live it up while you can, because tomorrow is coming – and it probably won’t be near as nice as today.
That’s the message from a recent report on the property/casualty insurance industry, which by all accounts is enjoying halcyon days.
Profits are historically high, reserves have been fattened, and revenues continue to inch up as well. Meanwhile rates are dropping for all lines of coverage (even coastal property premium increases appear to be leveling off).
There’s a good bit of handwringing among the financial writers; here’s a line that is fairly typical: “industry reported a 2.7% increase in underwriting gains in the first quarter to $8.9 billion, from $8.7 billion in the first quarter of 2006. This year-over-year growth has slowed dramatically from double-digit growth in the previous five years.” (TheStreet.com).
Come on, folks – ANY underwriting profit is gravy; the P&C industry makes its money on investment income. While there is no doubt the market is softening and profits will certainly diminish, it just means the pile of gold gets a little smaller.
It isn’t turning to dross.
What does this mean for you?
Perhaps just the SL600, and not the AMG 65 version.
