Property/casualty insurers' 2013 nine-month net income up 54.9%: Best
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The U.S. property/casualty insurance industry's net income for the first nine months of 2013 surged 54.9% over that of the same period in 2012 to $47.7 billion, according to an analysis released this week by A.M. Best Co. Inc.
In its special report, “U.S. P/C Industry Performance Remains Strong; Premium Growth Slows,” Oldwick, N.J.-based Best said that financial performance during the first three quarters of 2013 reflected improved underwriting results across all segments of the industry.
The report also noted that the combined ratio for the period improved 3.7 points to 96.5% from 100.2% during the same period a year earlier.
“Reduced losses from catastrophes and non-catastrophic weather events in 2013 have driven much of this improvement,” the report said.
Net written premiums for all segments of the property/casualty industry grew 4.5% through the first nine months of 2013 compared with the same period a year earlier. But Best noted that “strong growth” in personal lines premium volume drove the increase in the third quarter, as growth slowed for commercial lines and dropped in reinsurance.
Best said that improved pricing conditions driving higher net written premiums remained the primary source of the commercial insurance segments' increased profitability.
“The commercial lines segment performance year-to-date in 2013 has benefited from rate increases which, for most lines, have been ongoing for two policy cycles,” said Best. “Reduced loss frequency in some key casualty lines and a lower level of catastrophe losses have also contributed to improved results.”
Improved technology and increased use of predictive analytics have allowed insurers to maintain their underwriting and pricing discipline, Best said in the report.
