U.S. P&C insurance industry suffers $4.1 billion underwriting loss in 2021
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OLDWICK, N.J.–(BUSINESS WIRE)–The U.S. property and casualty insurance industry recorded a net underwriting loss of $4.1 billion in 2021, following a gain of $6.7 billion in 2020, due to increased losses and expenses; however, P&C insurers still managed to increase their year-over-year net income by 4.5%. These preliminary results are detailed in a new Best Special Reporttitled “First Look: 12 Month 2021 Property/Casualty Financial Results”, and the data is derived from companies’ annual statutory returns received as of March 4, 2021, representing approximately 96% of the total written P/C industry net premiums.
According to the report, the underwriting loss occurred despite a 7.4% growth in net premiums earned and a 45.4% decline in policyholder dividends, as they were offset by an 11.7% increase. incurred losses and loss adjustment expenses (LAE) and a 5.4% increase in underwriting expenses. The P&C industry’s combined ratio weakened 1.2 percentage points from a year earlier to 99.6.
A $7.2 billion increase in realized capital gains contributed to the industry’s net income of $63.6 billion, up from $60.9 billion in 2020. The P&C industry also increased its surplus, by 13.6%, from the end of 2020 to $1.0 trillion.
To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=318135.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
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Source: AM Best