US property/casualty net underwriting loss narrows
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The U.S. property/casualty insurance industry recorded a $21.2 billion net underwriting loss in 2023, a slight improvement from a $24.9 billion loss in 2022, A.M. Best Co. Inc. said in a report Monday.
The results were impacted by record severe convective storm losses, Best said.
Net income more than doubled to $90.1 billion, due to a $51.1 billion change in net realized capital gains at National Indemnity Co. Net investment income was virtually unchanged from the prior year.
The industry’s combined ratio improved slightly to 101.6 from 102.4 in 2022.
Best estimates that catastrophe losses accounted for 8.7 points of the 2023 combined ratio, up from an estimated 7.3 points in the prior year.
While net premiums written grew 10.4% to $837.7 billion, losses and loss adjustment expenses increased 10% to $612.5 billion, and underwriting expenses rose 6.4% to $208.3 billion.
Losses in the personal lines segment, specifically the homeowners line of business, were primarily responsible for the weak underwriting results.
Industry surplus increased to $1.0 trillion at year-end 2023.
Data in the report was from companies whose 2023 annual statutory statements were received as of March 8, 2024, accounting for an estimated 97% of total industry net premiums written and 96% of policyholder surplus.
