U.S. P&C Insurers Record Q1 $8.2B Underwriting Loss
July 12, 2023
The U.S. property and casualty (P&C) insurance industry posted an $8.2 billion net underwriting loss for the first three months of 2023 (an $11.6 billion swing from the first quarter of 2022), according to research from AM Best.
Although net premiums written increased 14.7% year-over-year to $217 billion in the first quarter of 2023, it was not enough to counteract a 26.9% increase in losses and loss adjustment expenses. Catastrophe losses contributed 6.9 points to the industry’s 102% combined ratio for the quarter—up from 3.9 points in the prior-year quarter.
The U.S. property and casualty insurance industry posted an $8.2 billion net underwriting loss for the first three months of 2023
“The personal lines segment—specifically the homeowners line of business—was primarily responsible for the decline in underwriting results,” AM Best said in a June 14 “First Look” review.
The industry also saw a 29.7% decline in net investment income, dropping pre-tax operating income by 70.7% to $7.5 billion. Net income also fell 70.7% to $8.1 billion.
Industry surplus rose 3.9% to $1 trillion from end-of-year 2022, but still remains 6.6% lower than in the first quarter of 2022, AM Best reported.
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