Best’s Special Report: U.S. Property/Casualty Industry Records $3.8 Billion Underwriting Gain in First-Half 2024
- September 16, 2024 10:20 AM (EDT)
//BestWire// - The U.S. property/casualty (P/C) industry recorded a $3.8 billion net underwriting gain in the first half of 2024, a significant improvement from the $24.0 billion loss recorded in the same prior-year period, according to a new AM Best report.
These preliminary results are detailed in a new Best’s Special Report, titled, “First Look: Six-Month 2024 US Property/Casualty Financial Results,” and the data is derived from companies whose six-month 2024 interim period statutory statements were received as of Sept. 4, 2024, accounting for an estimated 99% of total industry net premiums written.
According to the report, the P/C industry’s combined ratio improved to 97.7 in first-half 2024 from 104.4 in the same period of 2023. AM Best estimates that catastrophe losses accounted for 7.4 points on the six-month 2024 combined ratio, down from an estimated 9.7 points in the previous year, which had been impacted by record losses due to severe convective storm losses. The underwriting gain, due predominantly to improvements in personal lines results, along with a 26.6% increase in earned net investment income, drove pre-tax operating income up to $47.3 billion, compared with $10.0 billion in first-half 2023. A $50 billion change in net realized capital gains at National Indemnity Company resulted in the industry’s net income skyrocketing to $97.6 billion in the first half of this year from $9.4 billion last year.
To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=346755.
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.