US Property-Casualty Industry Posts 9-Month Underwriting Loss

The US property-casualty insurance industry posted a $32.2 billion net underwriting loss through the first 9 months of 2023, according to A.M. Best.

The underwriting loss during this year's first 3 quarters was $7.6 billion worse than the loss posted over the same period in 2022, Best said.

In a new Best's Special Report, titled First Look: Nine-Month 2023 US Property/Casualty Financial Results, the rating agency said that data was derived from companies whose 9-month 2023 interim period statutory statements were received as of December 4. That group represents an estimated 99 percent of total industry net premiums written and 98 percent of policyholder surplus, Best said.

In the December 8, 2023, report, Best said that losses in the personal lines segment were the primary driver of the property-casualty industry's 103.4 percent combined ratio for the 9-month period, a 0.7-percentage-point deterioration from the same period in 2022. Catastrophe losses were responsible for an estimated 9.8 percentage points in the 9-month 2023 combined ratio, Best said, up from an estimated 7.3 points during the first 3 quarters of 2022.

The US property-casualty industry's net earned premium grew 9.7 percent while policyholder dividends declined 2.2 percent over this year's first 9 months, Best said. Those were offset, however, by an 11.9 percent increase in incurred losses and loss adjustment expenses to $476.4 billion and an increase in other underwriting expenses, the rating agency said.

With earned net investment income during the 9 months nearly equivalent to that during last year's first 3 quarters at $51.4 billion, the underwriting loss drove the US property-casualty segment's pre-tax operating income down 28.4 percent to $19.9 billion, Best said.

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