A.M. Best is the latest data gather to note record catastrophe losses in 2017.
The ratings service said the P&C industry lost $53 billion in 2017. It works out to a whopping 110% more than 2016’s losses. No surprise, A.M. Best said the biggest losses come from two items. The first is a slew of hurricanes.
“2017 marked the first year since 2005 that four hurricanes made U.S. landfall in one season,” Best said.
The other reason is wildfires and especially the historic fires in California.
The losses in 2017 passed the $42 billion in 2011. That year we saw the Japan earthquake and tsunami and a year full of tornadoes in the U.S.
Other data in the report:
• Losses and loss adjustment expenses jumped 8.5% in 2017 compared to 2016
• This offsets the 3.5% rise in net premium earnings
• Catastrophe losses drove underwriting losses to a massive $23.5 billion
• That compares to $5.5 billion in 2016
• The combined ratio rose to 103.8
• That’s a 3% drop from 2016 and the worst in 5-years
• Net income for the P&C industry was down 1.7% to $40.8 billion
• Industry surplus grew 6.8% and is $733.8 billion
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