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FOR IMMEDIATE RELEASE
OLDWICK - AUGUST 23, 2018 02:26 PM (EDT)
The U.S. property/casualty industry’s net underwriting income improved in the first half of 2018 to $5.3 billion, compared with a $5.0 billion underwriting loss in the same prior-year period. This financial review is detailed in a new Best’s Special Report, titled, “A.M. Best First Look— First Half 2018 Property/Casualty Financial Results,” and the data is derived from companies’ six-month 2018 interim statutory statements that were received as of Aug. 20, 2018, representing an estimated 97% of the total property/casualty industry’s net premiums written.
The first-half 2018 underwriting results were driven by growth in net premiums written of 13.3% over the prior-year period, which offset a 3.8% increase in losses and loss adjustment expenses (LAE) incurred, a 12.9% rise in underwriting expenses and a 10.1% increase in policyholder dividends. With a more normalized level of catastrophe losses in first-half 2018, the industry’s combined ratio improved 4.5 points from the prior-year period to 96.4, the lowest six-month period combined ratio for the last five years.
The property/casualty industry also recorded a $3.7 billion increase in net investment income and a $2.0 billion increase in realized capital gains. Coupled with the strong underwriting improvement, these items boosted industry net income to $33.6 billion, an $18.7 billion increase from the prior-year period.
To access a copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=277318 .
A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry.