Best’s News & Research Service - March 22, 2023 07:54 AM (EDT)
Best’s Special Report: U.S. Property/Casualty Industry Suffers $26.5 Billion Underwriting Loss in 2022
- March 22, 2023 07:54 AM (EDT)
Oldwick //BestWire// - The U.S. property/casualty (P/C) industry recorded a $26.5 billion net underwriting loss in 2022, a slide of $21.5 billion from the prior year’s underwriting loss, according to a new AM Best report.
These preliminary results are detailed in a new Best’s Special Report, titled, “First Look: 12-Month 2022 US Property/Casualty Financial Results,” and the data is derived from companies’ annual statutory statements received as of March 9, 2023, representing an estimated 96% of the total P/C industry’s net premiums written.
According to the report, personal lines losses and the impact of Hurricane Ian caused the industry’s combined ratio to deteriorate to 102.7 from 99.7 in 2021. The underwriting loss came despite an 8.4% growth in net earned premiums and a 21.4% decline in policyholder dividends, which were countered by a 13.9% increase in incurred losses and loss adjustment expenses (LAE), as well as a 6.2% rise in other underwriting expenses.
With tax expense down 35.2% and realized capital gains down 83.2%, the industry’s net income slid 31.3% to $42.0 billion. The P/C industry surplus also declined 6.7% to $951.9 billion from the end of 2021.
To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=329904 .
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.