US P&C industry underwriting income up by 13 percent
The US property/casualty (P/C) industry’s net underwriting income improved in the first nine months of 2019 by 13 percent compared with the same prior-year period, according to a new report from global credit rating agency AM Best.
The Best’s Special Report, titled First Look: 9-Month 2019 Property/Casualty Financial Results, states that industry’s net underwriting income rose to $4.5 billion, as growth in net earned premiums offset year-over-year increases in incurred losses and loss adjustment expenses, underwriting expenses and policyholder dividends.
The data is derived from companies’ nine-month 2019 interim statutory statements received as of November 19, 2019, representing an estimated 97 percent of the total P/C industry’s net premiums written.
The nine-month 2019 combined ratio for the P/C industry weakened slightly by 0.5 percentage points from the prior-year period, to 98.0. AM Best estimates that catastrophe losses accounted for 4.4 points on the combined ratio, down from an estimated 5.1 points in the same period in 2018. A $1.1 billion increase in net investment income during the first nine months of 2019 contributed to a 4.5 percent increase in pre-tax operating income to $48.5 billion. Due to a $2.1 billion reduction in realized capital gains, industry net income remained unchanged from the prior-year period, at $49.5 billion.
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