US Property-Casualty Insurers Saw $26.5 Billion 2022 Underwriting Loss
March 27, 2023
The US property-casualty insurance market experienced a $26.5 billion net underwriting loss in 2022, a decline of $21.5 billion from the prior year's underwriting loss, according to A.M. Best.
In a new Best’s Special Report, First Look: 12-Month 2022 US Property/Casualty Financial Results, the rating agency said personal lines losses and the impact of Hurricane Ian caused the US property-casualty industry's combined ratio to deteriorate to 102.7 percent in 2022 from 99.7 percent in 2021.
The segment's underwriting loss came despite an 8.4 percent increase in net earned premiums and a 21.4 percent drop in policyholder dividends, the rating agency said. But those factors were offset by a 13.9 percent increase in incurred losses and loss adjustment expenses, as well as a 6.2 percent increase in other underwriting expenses, Best said.
The US property-casualty industry saw tax expense decline 35.2 percent and realized capital gains drop 83.2 percent in 2022, Best said, while the industry's net income was down 31.3 percent to $42.0 billion. The US property-casualty industry's surplus also declined 6.7 percent to $951.0 billion from the end of 2021, the rating agency found.
The Best report is based on data from companies' annual statutory statements received as of March 9, representing an estimated 96 percent of the total US property-casualty industry's net premiums written, Best said.
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March 27, 2023
