The U.S. property/casualty insurance industry’s net underwriting income has so far swung from a massive loss in 2017 to substantial profit, according to an A.M. Best report.
Carriers booked $3.5 billion in net underwriting income for the first nine months of 2018, A.M. Best said, versus a $21.2 billion underwriting loss over the same year-ago period. A.M. Best based its conclusion on companies’ nine-month 2018 interim statutory statements received as of Nov. 19, 2018. The data also covers 97 percent of total P/C industry net premiums written, the ratings agency said.
What brought growth? A number of factors helped, including a 11.3% net premium increase over the same period last year, as well as fixed loss and loss adjustment costs. She said it was best. Premium increases also surpassed the growth in losses and expenditures and the combined rate increased by nearly seven points in 2017 compared to the same period.
The biggest contributor to the US P / C industry’s improved insurance income: In the first nine months of 2018, catastrophic losses occurred at a normal rate, which was 5.1 points for the nine months of 2018 combined. In the same period in 2017, it increased by 9.9 points to A.M. She said it was best.
Net investment revenue also shaped the US P / C industry’s nine-month 2018 results and earned $ 6.2 billion from the same period of the previous year.
Net industry revenue increased $ 27.1 billion in the first nine months of 2018 to $ 49.1 billion.
Full report “A.M. Best First View – Nine Months 2018 Real Estate / Accident Cost Results. “
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