US P&C Industry Sees $9.3 Billion Underwriting Gain

The US property and casualty (P&C) industry recorded a $9.3 billion net underwriting gain in the first quarter of 2024, a significant turnaround from the $8.5 billion loss in the same period last year, according to a new report from AM Best. These preliminary results are detailed in First Look: Three-Month 2024 US Property/Casualty Financial Results and are based on companies' annual statutory statements received as of May 29, 2024, representing an estimated 98 percent of the total P&C industry's net premiums written.

The report indicates that the P&C industry's combined ratio improved to 94.2 in the first 3 months of 2024, compared to 102.5 in the first quarter of 2023. Catastrophe losses accounted for an estimated 5.1 points on the combined ratio, down from 7.6 points in the prior year when severe convective storm losses significantly impacted the industry.

The underwriting gain, along with a 33.3 percent increase in earned net investment income, boosted pretax operating income by 332.9 percent to $30.0 billion. Additionally, a $10.2 billion change in net realized capital gains at National Indemnity Company led to the industry's net income more than quadrupling to $39.9 billion.

Copyright © 2024 by AM Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.