The U.S. property/casualty industry posted net underwriting income of $4.2 billion in first-quarter 2019, a 24.0% increase from the same period in the previous year, according to preliminary financial results.
According to Best’s Special Report, “First Look—3 Month Property/Casualty Financial Results,” although statutory income improved, the combined ratio for the P/C industry deteriorated 1.3 points from the prior-year period to 96.5, with increases in the loss and loss-adjustment expense (LAE) ratio and the underwriting expense ratio (based on net premiums written, which fell by 2.3% compared with the prior-year period).
A.M. Best also estimates that catastrophe losses accounted for 3.0 points on the three-month 2019 combined ratio, down from an estimated 3.4 points in the prior-year period.
A $1.4 billion increase in net investment income during the first three months of 2019, coupled with the underwriting income increase boosted pre-tax operating income by 16.2% to $17.8 billion. Due to a $2 billion reduction in realized capital gains and incurred income taxes remaining flat, the industry’s net income of $16.9 billion was a modest $400 million increase from the prior-year period.
This data used by A.M. Best in this financial review is derived from companies’ three-month 2019 interim statutory statements that were received as of May 17, 2019, representing an estimated 92% of the total property/casualty industry’s net premiums written.
Source: Best’s Special Report
Topics Profit Loss Underwriting AM Best Market Property Casualty
Was this article valuable?
Here are more articles you may enjoy.
NFIP Reauthorized With Passage of Funding Bill to End Government Shutdown 
Bipartisan Legislation Introduced to Retroactively Restore NFIP 
Waymo Launches Driverless Robotaxis on Freeways in First for US 
Catastrophe Bonds Absorb ‘Black Swan’ Event Dealt by Melissa 
