U.S. P/C Industry Records $26.5 Billion Underwriting Loss in 2022
U.S. P/C Industry Records $26.5 Billion Underwriting Loss in 2022
Profit-and-Loss-580x387.jpg
The U.S. property/casualty (P/C) industry recorded a $26.5 billion net underwriting loss in 2022, down $21.5 billion from the prior year’s underwriting loss of $5 billion, according to a report published by AM Best. The underwriting loss came despite an 8.4% growth in net earned premiums and a 21.4% decline in policyholder dividends, which were countered by a 13.9% increase in incurred losses and loss adjustment expenses (LAE), as well as a 6.2% rise in other underwriting expenses, said the report, titled, “First Look: 12-Month 2022 US Property/Casualty Financial Results.”
Personal lines losses and the impact of Hurricane Ian caused the industry’s combined ratio to deteriorate to 102.7 from 99.7 in 2021, the report said. (Combined ratios above 100% indicate an underwriting loss). AM Best estimated that catastrophe losses accounted for 6.9 points on the 2022 combined ratio, down from an estimated 7.7 points in the prior year.
Net income for the year was down 31.3% to $42.0 billion, from $61.2 billion in 2021, the report said.
o-PILES-OF-AMERICAN-MONEY-facebook.jpg
Spanky.gif
Moneydive.gif
Calm Down.gif
U.S. P/C Industry Records $26.5 Billion Underwriting Loss in 2022 (insurancejournal.com)
Reply With Quote
