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Fewer US property-casualty insurer rating downgrades in H1 2026
AM Best said upgrades rose to 8.2% of total rating actions in the first half of 2026, up from 5.5% in H1 2025.
US property and casualty insurers saw substantially fewer ratings downgrades in the first half of 2026, with more upgrades than in the prior year period, according to AM Best, as discussed by Insurance Journal.
AM Best reported that upgrades increased to 8.2% of total rating actions in H1 2026, compared with 5.5% in H1 2025, and it said downgrades were often tied to operating performance that was either poor or improving.
The report attributed over half of downgrades to poor operating performance, noting that some insurers have struggled to keep losses under control, while deteriorated balance sheet metrics drove a further 27.3% of downgrades linked to adverse reserve development.
AM Best said the majority of 2026 downgrades occurred among commercial casualty and commercial auto carriers, reflecting ongoing challenges in those lines.