US Property-Casualty Industry Posts $3.8 Billion Underwriting Gain for First-Half 2024

The US property-casualty (P&C) industry recorded a net underwriting gain of $3.8 billion in the first half of 2024, marking a stark contrast to the $24.0 billion loss reported during the same period in 2023, according to a new report by AM Best.

The report, titled "First Look: Six-Month 2024 US Property/Casualty Financial Results," is based on data from companies representing approximately 99 percent of total industry net premiums written as of September 4, 2024. This report shows a significant improvement in the industry's combined ratio, which dropped to 97.7 for the first half of 2024 from 104.4 in the same period last year. Catastrophe losses contributed 7.4 points to the 2024 combined ratio, down from 9.7 points in 2023, which saw unprecedented losses from severe convective storms.

The report attributes much of the underwriting gain to better performance in personal lines, coupled with a 26.6 percent surge in earned net investment income. As a result, pre-tax operating income rose to $47.3 billion, compared to $10.0 billion in the first half of 2023. A $50 billion shift in net realized capital gains at National Indemnity Company also contributed to a sharp rise in industry net income, which soared to $97.6 billion, up from $9.4 billion in the previous year.

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