AM Best: Five US Life/Health Companies, One US Property/Casualty Company Impaired in 2024

Why It Matters

The drop in impairments signals stronger underwriting and lower loss volatility, improving insurers’ capital positions and investor confidence while highlighting lingering risks in work‑comp pricing and universal‑life mortality.

Key Takeaways

• Property/casualty impairments fell to one, down from 14.
• No catastrophe-related impairments reported in 2024 PC sector.
• Life/health impairments halved to five, driven by mortality.
• Work comp remains top line for PC impairments historically.
• ACA-related health impairments peaked 2015‑2017, now declining significantly.

Summary

AM Best’s 2024 impairment review shows a dramatic contraction in U.S. property‑casualty (PC) write‑offs, falling from 14 in 2023 to a single auto insurer in 2024. The report, presented by director Joseph Rosel, underscores that no catastrophe‑related PC impairments were recorded, ending three years of storm‑driven losses.

On the life‑health side, impairments halved to five, three of which stemmed from adverse mortality in a Connecticut‑based universal‑life subsidiary and two captive reinsurers. Over the two‑year span, six of ten health impairments were tied to “Friday health” issues, while ACA‑related health impairments largely clustered between 2015 and 2017.

Rosel highlighted that work‑comp lines have historically generated the most PC impairments, with 161 cases between 2000‑2005, and that inadequate pricing and reserve development remain key drivers. He also noted the legacy of ACA‑co‑ops, which produced 19 health impairments during their early years.

The sharp decline suggests tighter underwriting and better catastrophe risk management, but the persistence of work‑comp and mortality challenges signals areas for continued vigilance. Investors and regulators should monitor pricing discipline in commercial lines and mortality trends in universal‑life products as indicators of future sector resilience.

Original Description

Joseph Roethel, director, AM Best, discusses two Best's Special Reports that found no catastrophe-driven P/C impairments following three years of elevated storm losses, while recent health impairments include a number of troubled affiliates.

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