U.S. reinsurers reported increased premiums but a deteriorating combined ratio in 2017, according to a survey issued Wednesday by the Reinsurance Association of America.
Eighteen U.S. property/casualty reinsurers wrote $45.3 billion of net premiums during the 12 months ending Dec. 31, up from $41.1 billion of net premiums written during the same period in 2016, the Washington, D.C.-based association said in a statement.
The combined ratio for the group was 108.2%, deteriorating from 95.2% reported for the same period in 2016. The combined ratio reflects an 83.2% loss ratio and a 25% expense ratio.
Policyholders’ surplus was $168.6 billion, up from $146.8 billion at the end of the third quarter of 2017.
Industry experts have said that reinsurance rates may not react to recent catastrophe losses in the way the industry is hoping for at the upcoming Jan. 1, 2018 renewals, Artemis.bm reports. Various factors, including the influence of alternative capital, could limit any price increases, experts said. "I am thinking more in the 5%-15% range on property/casualty pricing," said Jay Gelb, managing director of equity research at U.S.-based financial services firm Barclays Capital Inc.