USA homeowners ROE outlook - 2012 update

Aon Benfield Analytics' annual review of USA homeowners rate changes and supporting actuarial information, based on rate filings available as of July 2012, finds that the country's largest Homeowners insurers continue to improve their ratemaking methods. The cost of capital required to support retained catastrophe risk has seen widespread acceptance by state regulators and by-peril rating is becoming more widespread. However, rising expected loss ratios and low investment returns result in a prospective return on equity (ROE) that is virtually the same as last year.

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