2009-11-23 22:52:03 -

Primary findings from A.M. Best Co.’s annual review of the auditor and actuarial markets show that in 2008, the top firms in the United States and Canada remained dominant. The market for actuarial firms continued to grow, with more insurers using external actuaries in 2008, increasing slightly from 2007.

- The study encompasses 2008 statutory filings submitted to A.M. Best for 3,708 U.S. and Canadian insurance companies. A.M. Best found that 259 independent accounting firms provided annual audits for 3,652 insurers.


- The actuarial market was composed of 180 actuarial firms providing 1,879 opinions and 1,327 companies declaring use of internal actuaries.


- The audit market share by net premiums written (NPW) of the Big Four—PricewaterhouseCoopers, Deloitte & Touche, Ernst & Young and

KPMG—was flat in 2008, at 96.5% of NPW.


- In 2008, there was a change in the auditor market share rankings by NPW, as Deloitte took over the number two ranking, pushing Ernst & Young into third. KPMG remains in fourth place.


- The actuarial market share by NPW of the Top Six—PricewaterhouseCoopers, KPMG, Milliman, Deloitte, Ernst & Young and Towers Perrin—showed a slight decrease to 80% of NPW from 81% in 2007. However, all the rankings of the Top Six remain unchanged.


- Use of external actuaries versus internal or affiliated actuarial opinions grew over the past five years to 58.6% in 2008, from 53.6% of the total companies in 2004.

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Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com : .



A.M. Best Co.Business AnalystsCarol

Demyanovich, 908-439-2200, ext. 5836 carol.demyanovich@ambest.com : mailto:carol.demyanovich@ambest.com orCarole
Ann King, 908-439-2200, ext. 5783 caroleann.king@ambest.com : mailto:caroleann.king@ambest.com orPublic
RelationsJim Peavy, 908-439-2200, ext. 5644 james.peavy@ambest.com : mailto:james.peavy@ambest.com orRachelle
Morrow, 908-439-2200, ext. 5378 rachelle.morrow@ambest.com : mailto:rachelle.morrow@ambest.com