Property/casualty net underwriting loss of $4.1B in 2021: A.M. Best
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The U.S. property/casualty industry produced a $4.1 billion net underwriting loss in 2021 as increased expenses and losses outpaced premium gains, A.M. Best Co. Inc. said Wednesday.
While net premiums written rose 9.2% to $690.7 million for the group of insurers included in Best’s data, losses and loss adjustment expense increased 11.7% to $483.8 million and underwriting expenses grew 5.4% to $182.0 million, Best figures showed.
The data contained in the report is from companies whose 2021 annual statutory statements were received as of March 4 and which account for an estimated 96% of total industry net premiums written and 94% of policyholder surplus, Best said.
The combined ratio for the group worsened to 99.6% in 2021 from 98.4% in 2020, the data showed. Net income rose 4.5% to $63.6 million.
Net investment income was a bright spot for the group, increasing 8.5% to $56.1 million. Policyholders surplus increased 7.6% to $895.9 million.
Also Wednesday, the Reinsurance Association of America said reinsurers’ statutory underwriting results showed a group of 17 U.S. property/casualty reinsurers wrote $74.6 billion of net premiums during the 12 months ended Dec. 31, 2021, up 14.6% from $65.1 billion in 2020.
The reinsurers’ combined ratio improved to 99.8% in 2021 from 101.4% in 2020. Policyholders’ surplus was $289.6 billion, an increase of 12.4% from $257.6 in the prior quarter.
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