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FOR IMMEDIATE RELEASE
OLDWICK - JUNE 03, 2021 12:40 PM (EDT)
The U.S. property/casualty (P/C) industry saw its net underwriting income fall in first-quarter 2021 by 53% as compared with the same prior-year period, according to preliminary financial results. This financial review is detailed in a new Best’s Special Report, “First Look: Three-Month 2021 Property/Casualty Financial Results,” and the data is derived from companies’ three-month 2021 interim statutory statements that were received as of June 1, representing an estimated 99% of the total P/C industry’s net premiums written.
According to the report, the combined ratio for the P/C industry deteriorated to 96.4 from 95.0 in the first quarter of 2020. Catastrophe losses accounted for an estimated 6.9 points on the three-month 2021 combined ratio, up from an estimated 3.3 points in first-quarter 2020. Despite 2.3% growth in net earned premiums in the quarter, increases in incurred losses, loss adjustment expenses (LAE) and underwriting expenses, as well as a sharp 72% rise in policyholder dividends, drove the underwriting income decline.
With net investment declining slightly, the drop in underwriting income drove a 12.9% reduction in pre-tax operating income. As tax expenses were down 18.4% and realized capital gains were up $4.1 billion, industry net income increased by 11.4% from the same prior-year period to $20.2 billion.
To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=309265 .
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.