P/C Insurers Boost Profit, Surplus
Net underwriting gains in the U.S. property and casualty industry rose to $5.4 billion over the first nine months of 2019, according to Verisk, a leading data analytics provider, and the American Property Casualty Insurance Association (APCIA). That was up from $4.7 billion a year earlier. The increase was driven by growth in premiums and a drop in catastrophe losses. P/C industry surplus reached a record high of $812.2 billion.
Net income after taxes declined to $48.1 billion for nine-months 2019 from $49.4 billion a year earlier, and insurers’ combined ratio deteriorated to 97.8% from 97.4% a year earlier. Net losses and loss adjustment expenses from catastrophes declined to $21.5 billion for nine-months 2019 from $26.0 billion a year earlier. Net written premium growth slowed to 2.7 percent in nine-months 2019, after jumping 11.4 percent a year earlier.
“The U.S. property/casualty insurers’ financial results during the first nine months of 2019 paint a picture of a strong industry with a rock-solid foundation that enables consumers to rest assured that they will be protected when they need it most,” said Robert Gordon, senior vice president for policy, research and international, at APCIA.