Best’s Special Report: Preliminary Nine-Month 2019 Results Show 13% Underwriting Income Increase for U.S. Property/Casualty Industry
OLDWICK, N.J.--(BUSINESS WIRE)--Nov 22, 2019--
The U.S. property/casualty (P/C) industry’s net underwriting income improved in the first nine months of 2019 by 13% compared with the same prior-year period 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. This financial review is detailed in a new Best’s Special Report, titled, “First Look: 9-Month 2019 Property/Casualty Financial Results.” The data is derived from companies’ nine-month 2019 interim statutory statements received as of Nov. 19, 2019, representing an estimated 97% 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% 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.
To access a copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=292087.
AM Best is a global credit rating agency, news publisher and data provider specializing in the insurance industry. The company does business in more than 100 countries. Headquartered in Oldwick, NJ, AM Best has offices in cities around the world, including London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
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KEYWORD: NEW JERSEY EUROPE UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: PROFESSIONAL SERVICES INSURANCE FINANCE
SOURCE: AM Best
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PUB: 11/22/2019 08:08 AM/DISC: 11/22/2019 08:08 AM