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FOR IMMEDIATE RELEASE
OLDWICK - NOVEMBER 21, 2017 03:17 PM (EST)
The U.S. property/casualty (P/C) industry recorded a net underwriting loss of $20.0 billion for the first nine months of 2017, according to preliminary results, dwarfing a $2.3 billion loss in the same period a year ago. This financial review is detailed in a new Best’s Special Report, titled, “A.M. Best First Look—3Qtr 2017 U.S. Property/Casualty Financial Results,” and the data is derived from companies’ nine-month 2017 interim statutory statements received as of Nov. 16, 2017, representing an estimated 95% of the total property/casualty industry’s net premiums written.
The report notes that the catastrophes so far this year are the main driver of year-to-date 2017 results, overshadowing underlying industry fundamentals. A.M. Best estimates U.S. P/C industry nine-month 2017 catastrophe losses of $38.4 billion, up 89.1% from the same period of 2016 and eclipsing A.M. Best’s full-year 2012 catastrophe loss estimate of $36.1 billion, which included Superstorm Sandy. A.M. Best also estimates that the catastrophe losses account for 9.8 points on the combined ratio, which deteriorated by 4.3 points from the prior-year period to 104.0, marking the worst first nine-month period of the past five years.
Year-to-date 2017 net income for the industry declined 25.5% compared with the prior-year period to $22.9 billion. However, despite the significant decline in net income, industry surplus grew to $699.8 billion at the end of September 2017, driven by an $11.2 billion increase in unrealized gains, a slight increase in other surplus gains and a 20% reduction in stockholder dividends.
To access a copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=268075 .
A.M. Best is the world’s oldest and most authoritative insurance rating and information source.