Thirteen U.S. property/casualty companies became impaired in 2023, 10 of which were placed into insolvent liquidation, according to an AM Best report.

The insurance company impairments identified in the U.S. property/casualty industry in 2023 follow six reported impairments in 2022.

In addition to identifying impairments that occurred in 2023, the latest Best’s Special Report also includes information on other impairments that occurred from 2000 to 2022 first identified by AM Best this year.

Five insurers were impacted by catastrophe losses, while another four impairments were private passenger auto writers, according to the report.

Four of the five companies impacted by catastrophe losses were affected by severe convective storms, primarily in the Midwest and South. Two other impairments were insurers that had been in run-off for many years, the report found. A commercial multi-peril writer, primarily in California, that was impacted by adverse loss reserve development, and a small Missouri-based fire writer that was unable to generate revenue sufficient to cover the company’s operating expenses represented the remaining two impairments.

The report, “2023 US Property/Casualty Impairments Update,” indicates that 432 P/C insurers became impaired between 2000 and 2023, with 364 insolvent liquidations and 66 rehabilitations, 43 of which were closed during the period; 23 remained open as of this report.

In addition, there were 59 conservatorships, 57 of which led directly to either rehabilitation or liquidation, the report added.

During the 2000-2023 period, workers’ compensation insurers accounted for 23 percent of the impairments.

Personal lines insurers accounted for 31 percent, split between private passenger auto (19 percent) and homeowners (12 percent).

Commercial lines insurers accounted for 22 percent of impairments, with other liability/commercial multi-peril accounting for 14 percent and commercial auto making up 8 percent.

The remaining 23 percent was split among specialty lines.