Press Release - MAY 24, 2018
A.M. Best Special Report: Preliminary First-Quarter 2018 Results Show Underwriting Turnaround for U.S. P/C Industry
FOR IMMEDIATE RELEASE
OLDWICK - MAY 24, 2018
According to the report, increases in net and earned premiums written drove the underwriting improvement, which offset a 3.1% increase in losses and loss adjustment expenses incurred and a 12.7% rise in underwriting expenses and policyholder dividends. Following 2017 when catastrophe caused record insured losses, catastrophe losses returned to a more normalized level in first-quarter 2018. A.M. Best estimates that catastrophe losses accounted for 3.4 points on the three-month 2018 combined ratio, down from an estimated 6.0 points in the prior-year period.
P/C industry results also reflect a $600 million increase in net investment income and a $1.3 billion increase in realized capital gains. In addition, a $5.9 billion loss in other income in 2017 from a retroactive reinsurance contract entered into by American International Group, Inc. and National Indemnity Company was not repeated in the current period. These factors, along with the strong underwriting results, boosted the P/C industry’s net income to $17.4 billion in first-quarter 2018, a $10 billion improvement from the prior-year period.
To access a copy of this report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=273839 .
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