Best’s News & Research Service - August 23, 2021 09:02 AM (EDT)
Best’s Special Report: U.S. Property/Casualty Insurance Industry’s Underwriting, Net Income Increases in First-Half 2021
- August 23, 2021 09:02 AM (EDT)
Oldwick //BestWire// - The U.S. property/casualty (P/C) industry grew its net underwriting income by 28% in the first six months of 2021 compared with the same prior-year period, according to a new AM Best report.
This financial review is detailed in a new Best’s Special Report, titled, “First Look: Six-Month 2021 Property/Casualty Financial Results,” and the data is derived from companies’ six-month 2021 interim statutory statements that were received as of Aug. 18, 2021, representing an estimated 97% of the total P/C industry’s net premiums written. The report states that a 5.4% growth in net earned premiums and 55.3% decline in policyholder dividends offset increases in incurred losses and loss adjustment expenses and underwriting expenses, leading to the underwriting income increase.
The combined ratio for the industry improved by 0.8 percentage points from first-half 2020 to 96.9, with catastrophe losses representing 5.8 percentage points, compared with 6.5 in the same prior-year period.
A 6.4% increase in net investment income and an additional $1.4 billion in other income, coupled with the improvement in underwriting income, drove a 14.1% rise in pre-tax operating income. A $10.4 billion increase in realized capital gains contributed to industry net income growth of 57.9% to $38.1 billion.
To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=311926
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 New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.