Private US property / casualty insurers reported a net underwriting profit of $ 4.7 billion in nine months 2018, a sharp reversal of a net insurance loss of $ 21.0 billion a year earlier.

The results were helped by a rare drop in total losses and loss adjustment costs (LLAE) and substantial premium growth, according to the ISO data company and the American Property Casualty Insurance Association (the new trading group formed by the merger of the American Insurance Association and the non-life insurers). of the real estate of America).

Overall LLAE decreased 0.5 percent to $ 310.2 billion in nine months 2018, largely driven by a decrease of $ 13.1 billion in net LLAE due to disasters.

The net premium booked grew 11.4 percent to $ 468.8 billion in nine months 2018, partly influenced by organic premium growth and changes that several insurers implemented in their reinsurance arrangements.

The net investment result grew to $ 40.9 billion in nine months 2018 from $ 35.4 billion a year earlier, with the increase being influenced by large dividends from subsidiaries of insurers that are not active in property / accident insurance. All in all, the net income after tax of insurers more than doubled to $ 49.5 billion in nine months 2018 of $ 22.4 billion in nine months 2017.
Third quarter results
Net income after tax from insurers rose from $ 6.9 billion in the third quarter of 2018 in the third quarter of 2017 to $ 15.5 billion in the third quarter of 2017, and their combined ratio improved from 99.7 percent a year earlier in the third quarter of 2018 to 99.7 percent.

Their annual return on average surplus has more than doubled to 8 percent in the third quarter of 2018 from 3.8 percent a year earlier.

Net written premiums increased by 8 percent in the third quarter of 2018 compared to 4.2 percent in the third quarter of 2017.

Neil Spector, president, ISO, commented that the full year results for 2018 will be affected by the losses of Californian forest fires.

He offered advice to insurers to get ahead. "In the coming years, the insurance results of insurers will depend to a large extent on their ability to acquire and use the analytical and technological tools to help automate processes, improve decision-making and reduce costs," said Spector.

Robert Gordon, APCI's senior vice president for policy, research and international, also commented on progress in the light of recent stock market activities:

"The annual return on investment has continued to outperform the industry average for the past ten years and the steep decline in the stock market in December may be a precursor to increasing volatility." Insurers are well positioned to provide stability and comprehensive consumer protection options in the new year. offer, "he said.

Source: ISO, APCI


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