Net underwriting income increases 24% in Q1: Best

Net underwriting income for the U.S. property/casualty industry in the first three months of 2019 rose 24.0% from the prior year period to $4.16 billion, according to a report from ratings agency A.M. Best & Co. on Tuesday.

Net premiums written declined 2.3% to $142.46 billion but net premiums earned increased 3.9% to $139.67 billion, helping to offset a 5.4% increase in losses and loss-adjustment expense, according to Best’s First Look – 3 Month 2019 Property/Casualty Financial Results.

The industry’s combined ratio weakened 1.3 points from the prior year period to 96.5% from 95.2%, Best said.

Net investment income was up $1.4 billion over last year and the industry surplus increased 4.9% from the end of 2018 to $769.52 billion, data showed.

Data is derived from companies’ three-month 2019 interim statutory statements that were received as of May 17, 2019, representing an estimated 92% of the total property/casualty industry’s net premiums written, Best said in a statement with the report.