US P&C Industry Posts $24.3 Billion Underwriting Loss through Q3

The US property-casualty insurance industry recorded a $24.3 billion net underwriting loss during the first 9 months of 2022, according to A.M. Best.

The loss through this year's first three quarters nearly quadruples the loss the US property-casualty industry recorded over the same period in 2021, Best said.

In a Best's Special Report, "First Look: Nine-Month 2022 U.S. Property/Casualty Financial Results," the rating agency said that the US property-casualty industry's 8.4 percent growth in net earned premiums and 22.3 percent decrease in policyholder dividends were offset by a 14.0 percent increase in incurred losses and loss adjustment expenses and a 6.5 percent increase in other underwriting expenses.

Best said the personal lines segment, specifically personal automobile business, was responsible for the decline in the industry's underwriting results. Increased automobile losses and losses resulting from Hurricane Ian also contributed to the US property-casualty industry's underwriting loss, Best said.

Those factors helped produce a 102.8 percent combined ratio for the segment over this year's first three quarters, with an estimated 7.0 percentage points resulting from catastrophe losses.

The US property-casualty industry's surplus declined 11.0 percent from the end of 2021 to $919.6 billion, according to Best.