U.S. P/C Records $6.3 Billion First-Half Underwriting Loss: AM Best

September 6, 2022
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Growth in net premiums and a decline in policyholder dividends were eclipsed by losses and expenses to result in a $6.3 billion net underwriting loss for the U.S. property/casualty industry at the half-way mark of 2022.

According to a special report from AM Best, the underwriting losses booked by the U.S. industry during the first half 2022 was down $11.4 billion from the same time period in 2021.

“The personal lines segment, specifically the auto lines of business, were responsible for the decline in underwriting results,” AM Best said.

U.S. P/C industry net income at June 30 was $31.4 billion, down 17.7% compared with the first six months of 2021. The combined ratio worsened to 100 compared with 97 a year ago. Excluding favorable reserve development during the first six months, the accident-year combined ratio was 101.9.

According to AM Best, the industry saw a 9.3% growth in net premiums earned to $359.2 billion and decreased policyholder dividends by 27.7%. However, losses and loss adjustment expenses increased 15.8% to $264.5 billion and underwriting expenses went up over 7% to $99.3 billion.

Topics USA Profit Loss Underwriting Property Casualty AM Best

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Latest Comments

  • September 6, 2022 at 9:48 am
    PolarBeaRepeal says:
    "What impact has" should be "What impact of". Bear culpa. Also, I am following statutory accounting practices (SAP), per (AMBest's) reporting practice for P&C companies. G... read more
  • September 6, 2022 at 9:41 am
    PolarBeaRepeal says:
    Excerpt: " Growth in net premiums and a decline in policyholder dividends were eclipsed by losses and expenses...." While that statement is succinct and clear, it isn't enough... read more

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