In revisiting our analysis of declining P&C industry book yields, this year we took stock of how closely the reported figures have followed our previous forecast. As we expected, 2017 was another year of book yield degradation for the P&C industry, despite the fact that the entire yield curve has risen over 50 bps since July of 2016 (much more in shorter maturities), providing a significantly better reinvestment rate. 2017 represents the 9th consecutive year of degradation but for 2018 we may finally see stabilization and perhaps even an increase in industry book yields.
Read More
The NEAM Vantage Point series of publications delivers actionable insights to insurance executives by covering a wide range of investment and capital markets topics relevant to the insurance industry.