Press Release - NOVEMBER 21, 2018
Best’s Special Report: Preliminary Nine-Month 2018 Results Show Sharp Turnaround in Underwriting Income for U.S. P/C Industry
FOR IMMEDIATE RELEASE
OLDWICK - NOVEMBER 21, 2018
The nine-month 2018 underwriting results were driven by growth in net premiums written of 11.3% over the same prior-year period. Loss and loss adjustment expenses (LAE) incurred remained flat, while underwriting expenses and policyholder dividends increased, by 12.2% and 3.0%, respectively. With premium increases outpacing the growth in incurred losses and expenses during the first nine months of 2018, the combined ratio for the industry improved 6.7 points from the prior-year period to 97.6. In addition, catastrophe losses in the first nine months of 2018 returned to a more normalized level and accounted for an estimated 5.1 points on the nine-month 2018 combined ratio, compared with 9.9 points in the prior-year period.
The industry’s nine-month 2018 results also reflected a $6.2 billion increase in net investment income and a $5.0 billion improvement in other income. Coupled with the strong underwriting improvement, these items offset a $5 billion decline in realized capital gains and a $4.8 billion increase in taxes incurred, boosting industry net income to $49.1 billion, a $27.1 billion 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=280333 .
A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry.