The U.S. property/casualty (P/C) industry recorded a $9.3 billion net underwriting gain in the first three months of 2024, a significant improvement from the $8.5 billion loss recorded in the same prior-year period, according to a new AM Best report. These preliminary results are detailed in a new Best’s Special Report, titled, “First Look: Three-Month 2024 US Property/Casualty Financial Results,” and the data is derived from companies’ annual statutory statements received as of May 29, 2024, representing an estimated 98% of the total P/C industry’s net premiums written.
According to the report, the P/C industry’s combined ratio improved to 94.2 in the three-month period from 102.5 in first-quarter 2023. Catastrophe losses accounted for an estimated 5.1 points on the three-month 2024 combined ratio, down from 7.6 points in the prior year when record severe convective storm losses impacted the P/C industry.
The underwriting gain, coupled with a 33.3% increase in earned net investment income, drove pre-tax operating income up 332.9%, to $30.0 billion. A $10.2 billion change in net realized capital gains at National Indemnity Company resulted in the industry’s net income more than quadrupling to $39.9 billion.
To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=343416.