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Best’s News & Research Service - May 21, 2019 10:40 AM (EDT)

Best’s Special Report: Preliminary First-Quarter 2019 Results Show 24% Underwriting Income Bump for U.S. P/C Industry

  • May 21, 2019 10:40 AM (EDT)
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Oldwick //BestWire// - The U.S. property/casualty (P/C) industry posted net underwriting income of $4.2 billion in first-quarter 2019, according to preliminary financial results, a 24.0% increase from the same period in the previous year. This financial review is detailed in a new Best’s Special Report, titled, “First Look—3 Month Property/Casualty Financial Results,” and the data is derived from companies’ three-month 2019 interim statutory statements that were received as of May 17, 2019, representing an estimated 92% of the total property/casualty (P/C) industry’s net premiums written.

According to the report, although statutory income improved, the combined ratio for the P/C industry deteriorated 1.3 points from the prior-year period to 96.5, with increases in the loss and loss-adjustment expense (LAE) ratio and the underwriting expense ratio (based on net premiums written, which fell by 2.3% compared with the prior-year period). AM Best also estimates that catastrophe losses accounted for 3.0 points on the three-month 2019 combined ratio, down from an estimated 3.4 points in the prior-year period.

A $1.4 billion increase in net investment income during the first three months of 2019, coupled with the underwriting income increase boosted pre-tax operating income by 16.2% to $17.8 billion. Due to a $2 billion reduction in realized capital gains and incurred income taxes remaining flat, the industry’s net income of $16.9 billion was a modest $400 million increase from the prior-year period.

To access a copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=285768 .

AM Best is the world’s oldest and most authoritative insurance rating and information source.



Property Insurance Casualty Insurance Property And Casualty Insurance United States New Jersey Press Release A.M. Best Rating Services, Inc. Insurance


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