US P&C Industry Results Show 13 Percent Underwriting Income Increase

The US property and casualty (P&C) industry's net underwriting income improved in the first 9 months of 2019 by 13 percent compared with the same prior-year period to $4.5 billion, as growth in net earned premiums offset year-over-year increases in incurred losses and loss adjustment expenses, underwriting expenses, and policyholder dividends, according to A.M. Best.

The data is derived from companies' 9-month 2019 interim statutory statements received as of November 19, 2019, representing an estimated 97 percent of the total P&C industry's net premiums written.

The 9-month 2019 combined ratio for the P&C industry weakened slightly by 0.5 percentage points from the prior-year period, to 98 percent. A.M. Best estimates that catastrophe losses accounted for 4.4 points on the combined ratio, down from an estimated 5.1 points in the same period in 2018.

A $1.1 billion increase in net investment income during the first nine months of 2019 contributed to a 4.5 percent increase in pretax operating income to $48.5 billion. Due to a $2.1 billion reduction in realized capital gains, industry net income remained unchanged from the prior-year period, at $49.5 billion, A.M. Best said.

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