OLDWICK, N.J.–(BUSINESS WIRE)–The U.S. property/casualty (P/C) industry posted net underwriting income
of $4.2 billion in first-quarter 2019, according to preliminary
financial results, a 24.0% increase from the same period in the previous
year. This financial review is detailed in a new Best’s Special Report,
titled, “First Look—3 Month Property/Casualty Financial Results,” and
the 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 (P/C) industry’s net
premiums written.
According to the report, although statutory income improved, the
combined ratio for the P/C industry deteriorated 1.3 points from the
prior-year period to 96.5, with increases in the loss and
loss-adjustment expense (LAE) ratio and the underwriting expense ratio
(based on net premiums written, which fell by 2.3% compared with the
prior-year period). AM Best also estimates that catastrophe
losses accounted for 3.0 points on the three-month 2019 combined ratio,
down from an estimated 3.4 points in the prior-year period.
A $1.4 billion increase in net investment income during the first three
months of 2019, coupled with the underwriting income increase boosted
pre-tax operating income by 16.2% to $17.8 billion. Due to a $2 billion
reduction in realized capital gains and incurred income taxes remaining
flat, the industry’s net income of $16.9 billion was a modest $400
million increase from the prior-year period.
To access a copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=285768.
AM Best is the world’s oldest and most authoritative insurance rating
and information source. For more information, visit www.ambest.com.
Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its
affiliates. ALL RIGHTS RESERVED.
Contacts
Matthew Coppola
Associate Director
–
Corporate Data Management
+1 908 439 2200, ext. 5627
[email protected]
Christopher Sharkey
Manager, Public Relations
+1
908 439 2200, ext. 5159
[email protected]
Jim Peavy
Director, Public Relations
+1 908
439 2200, ext. 5644
[email protected]
