The A.M. Best First Look—1Qtr 2017 U.S. Property/Casualty Financial Results report said the first quarter of 2017 is the first first quarter in five-years that the insurance industry has shown a net underwriting loss.
The loss is $841.5 million and is a far cry from the $2 billion net profit in underwriting in the first quarter of 2016.
According to A.M. Best:
• Net income dropped to $7.3 billion — a 45% decline from 2016’s first quarter
• Net investment income rose 9.5% to $11.9 billion
• Half of that was offset by a $5.9 billion loss in other income
• The industry surplus hit a record $696.9 billion driven by $8.5 billion in unrealized gains, surplus gains and a reduction in stockholder dividends
A.M. Best said the P&C industry combined ratio for the first quarter is 99.7 compared to 97.7 in the first quarter of last year.
Another impact is catastrophe losses. They came in at $7.6 billion. That’s up 48% from a year ago and accounted for 6 points on the combined ratio.
A.M. Best also noted that the results — of course — will vary depending on the insurer. AIG, Allstate, CNA, The Hartford and Chubb all had a better quarter one than a year ago.
Liberty Mutual and Travelers saw profits fall from storm losses.
Source link: Insurance Journal